MBA 6-7 Accounts receivable and inventory turnover The following data (in millions) were adapted from recent financial statements of Heia (HPQ) formerly Hewlett-Packard Company. Year 2 Year 1 Sales Cost of goods sold Operating income Average accounts receivable Average inventory $103,355 78,596 5,471 16,530 6,450 $111454 84,839 7,185 17,899 6,231 1. Compute the accounts receivable turnover for Years 1 and 2. Round to one decimal place 2. Compute days' sales in receivables for Years 1 and 2. Round to nearest day. 3. Compute the inventory turnover for Years 1 and 2. Round to nearest day. 4. Compute days' sales in inventory for Years 1 and 2. Round to nearest day. 5. Compute the return on sales for Years 1 and 2. Round to one decimal place. 6. Comment on HP's operations based upon the results in parts (1), (2), (3), (4) and 5)