Accounts Receivable Analysis

The following data are taken from the financial statements of McKee Technology Inc. Terms of all sales are 2/10, n/55.

	2016		2015		2014
Accounts receivable, end of year	$113,600		$120,000		$128,200
Net sales on account	630,720		570,860

a. For 2015 and 2016, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year.

	2016		2015
1. Accounts receivable turnover
2. Number of days' sales in receivables		days		days

b. The collection of accounts receivable has improved . This can be seen in both the increase in accounts receivable turnover and the decrease in the collection period.