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 $1,366,925 $1,377,510 Accounts receivable 131,400 124,100 Assume that accounts receivable were $146,000 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round 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: days Year 1: days c. The change in accounts receivable turnover from year 1 to year 2 indicates a(n) in the efficiency of collecting accounts receivable and is an) change. The change in the days' sales in receivables indicates an) change. Feedback Check My Work The Accounts receivable turnover is a ratio of Sales to Average accounts receivable. The number of Days' Sales in Receivables is a ratio of Average accounts receivable to Average daily sales. Consider the components of the ratios. Consider whether changes reflect efficiency. A decreasing accounts receivable turnover indicates an unfavorable trend, while an increasing days' sales in receivables indicates an unfavorable trend