Accounts Receivable Turnover and Days' Sales in Receivables

Rosco Co$.$ manufactures and markets food products throughout the world. The following sales and receivable data

were reported by Rosco for two recent years:

Assume that the accounts receivable were $$375,950$ at the beginning of Year $1.$

a$.$ Compute the accounts receivable turnover for Year $2$ and Year $1.$ Round your answers to one decimal place.

Year $2$:

Year $1$:

b$.$ Compute the days' sales in receivables at the end of Year $2$ and Year $1.$ Use $365$ days per year in your calculations.

Round your answers to one decimal place.

Year $2$:

days

Year $1$:

days

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 $a(n)$

change. The change in the days' sales in

receivables indicates $a(n)$

change.Rosco Co$.$ manufactures and markets food products throughout the world. The following sales and receivable data were reported by Rosco for two recent years:

Year $2$ Year $1$

Sales $$4,319,410$ $$4,088,000$

Accounts receivable $448,950441,650$

Assume that the accounts receivable were $$375,950$ at the beginning of Year $1.$

a$.$ Compute the accounts receivable turnover for Year $2$ and Year $1.$ Round your answers to one decimal place.

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

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

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

Year $2$: fill in the blank $3$

days

Year $1$: fill in the blank $4$

days

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$)$

change. The change in the days' sales in receivables indicates a$($n$)$

change.