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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	$5,285,200		$5,028,970
Accounts receivable	667,950		653,350

Assume that the accounts receivable were $558,450 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 at the end of Year 2 and Year 1. Use 365 days per year in your calculations. Round to one decimal place.

Year 2:	days
Year 1:	days

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: Year 2 Year 1 Sales $5,028,970 Accounts receivable 667,950 653,350 Assume that the accounts receivable were $558,450 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: 5.3 X Year 1: 5 .4 x 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 to one decimal place. Year 2: 68.9 x days Year 1: 67.6 x days c. The change in the accounts receivable turnover from year 1 to year 2 indicates a(n) decrease in the efficiency of collecting accounts receivable and is a(n) unfavorable change. The change in the days' sales in receivables indicates a(n) unfavorable change