The following data are taken from the financial statements of Krawcheck Inc. Terms of all sales are 2/10, n/55.

2016 2015 2014 Accounts receivable, end of year $500,000 $475,000 $440,000 Net sales on account 3,412,500 2,836,500

a. For 2015 and 2016, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year.

2016 2015 1. Accounts receivable turnover 2. Number of days' sales in receivables days days b. The collection of accounts receivable has improved . This can be seen in both the increase in accounts receivable turnover and the decrease in the collection period.