1. 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 n/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

   Preceding Year

   2. The number of days' sales in receivables: Assume a 365-day year.

   Current Year days

   Preceding Year days

   b. Comment on any significant trends revealed by the data.

   Sales during the current year, indicating a(n) trend. The accounts receivable turnover has . Based on credit terms of n/45, the current year turnover indicates that receivables are not being collected within the 45-day period. Likewise, the number of days' sales in receivables indicates a(n) trend.