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Accounts Receivable Turnover and Days' Sales in Receivables Quasar, Inc. sells clothing, accessories, and personal care products for men and women through its retail
Accounts Receivable Turnover and Days' Sales in Receivables Quasar, Inc. sells clothing, accessories, and personal care products for men and women through its retail stores. Quasar reported the following data for two recent years: Year 2 Year 1 Sales Accounts receivable $3,299,235 255,500 $3,410,560 248,200 Assume that accounts receivable were $284,700 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round your answer to one decimal place. Year 2: Year 1: b. Compute the days' sales in receivables for Year 2 and Year 1. Round interim calculations and final answers to one decimal place. Use 365 days per year in your calculations. Year 2: Year 1: days days c. The change in accounts receivable turnover from year 1 to year 2 indicates a(n) receivable and is a(n). change. The change in the days' sales in receivables indicates a(n) [ in the efficiency of collecting accounts change.
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