The following data are taken from or calculated from the financial statements: Current Year Preceding Year Average accounts receivable (net) $123,000 $95,000 Sales on account 950,000 825,000 a. Assuming that credit terms on all sales are r/45, determine for each year (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round intermediate calculations to whole numbers and final answers to two decimal places, 1. The accounts receivable turnover Current Year 7.72 Preceding Year 8.68 2. The number of days sales in receivables: Assume a 365-day year. Current Year 47.28 days Preceding Year 42.05 days b. Comment on any significant trends revealed by the data Sales increased during the current year, indicating an) favorable trend. The accounts receivable turnover has declined Based on credit terms of 1/45 the current vear turnover indicates that some receivables act not being collected within the 45-day period. Likewise, the number of day sales in receivables b. Comment on any significant trends revealed by the data Sales increased during the current year, indicating a(n) favorable trend. The accounts receivable turnover has declined Based on credit terms of n/45 the current year turnover indicates that some receivables are not being collected within the 45-day period. Likewise, the number of days sales in receivables indicates an) unfavorable trend Previous