8-2-8

Classic Company designs, markets, and distributes a variety of apparel, home dcor, accessory, and fragrance products. The company's products include such brands as Classic Company, Polo by Classic Company, and Chaps. For two recent years, the company reported the following (in millions): Year 2Year 1 Sales $3,027,675 $3,022,930 Accounts receivable (end of year) 375,950 390,550 The accounts recelvable at the beginning of Year 1 was $346,750 a. Compute the accounts recelvable turnover for Year 1 and Year 2. Round to one decimal place. Year 1 Year 2 Accounts Recelvable Turnover b. Compute the number of days' sales in recelvables for Year 1 and Year 2. Round to one decimal place. Use 365 days per year in your calculations. Year i Year 2 Number of Days' Sales in Receivables c. The change in the accounts receivable turnover from year 1 to year 2 indicates a(n) in the efficiency of collecting accounts receivable and is a(n) trend. The change in the days' sales in receivables is a(n) trend