Accounts Receivable Turnover and Days' Sales in Receivables

Classic Company designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The companys products include such brands as Polo by Classic, Classic Purple Label, Classic, Polo Jeans Co., and Chaps. Polo Classic reported the following for two recent years:

	For the Period Ending
	Year 2		Year 1
Sales	$5,419,155		$5,352,360
Accounts receivable	529,250		543,850

Assume that accounts receivable were $485,450 at the beginning of Year 1.

a. Compute the accounts receivable turnover for Year 2 and Year 1. Round your answers to two decimal places.

Year 2:	fill in the blank 1
Year 1:	fill in the blank 2

b. Compute the days' sales in receivables for Year 2 and Year 1. Round your final answers to one decimal place. Use 365 days per year in your calculations.

Year 2:	fill in the blank 3 days
Year 1:	fill in the blank 4 days