Accounts receivable turnover and number of days’ sales in receivables OBJ. 8 Financial statement data for years ending December 31 for Chiro-Solutions Company follows:

2016 2015 Sales $2,912,000 $2,958,000 Accounts receivable:

Beginning of year 300,000 280,000 End of year 340,000 300,000

a. Determine the accounts receivable turnover for 2016 and 2015.

b. Determine the number of days’ sales in receivables for 2016 and 2015. Use 365 days and round to one decimal place.

c. Does the change in accounts receivable turnover and the number of days’ sales in receivables from 2015 to 2016 indicate a favorable or an unfavorable trend?