Classic Company: Accounts receivable turnover and number of days' sales in receivables Classic Company designs, markets, and distributes a variety of apparel, home dcor, accessory, and fragrance products. The company's products include such brands as Classic Company, Polo by Classic Company, and Chaps. For two recent years, the company reported the following (in millions): Sales Year 2 $3,180,975 Year 1 Accounts receivable (end of year) 375,950 $3,170,390 390,550 The accounts receivable at the beginning of Year 1 was $346,750. a. Compute the accounts receivable turnover for Year 1 and Year 2. Round to one decimal place. > Accounts Receivable Turnover Year 1 Year 2 43.9 X 44.1 X b. Compute the number of days' sales in receivables for Year 1 and Year 2. Round to one decimal place. Use 365 days per year in your calculations. Number of Days' Sales in Receivables Year 1 Year 2 c. The change in the accounts receivable turnover from year 1 to year 2 indicates a(n) decrease accounts receivable and is a(n) unfavorable in the efficiency of collecting trend. The change in the days' sales in receivables is a(n) unfavorable trend. Feedback