Use Allarco Inc.'s financial statements to compute the accounts receivable collection period, and indicate whether the change from year to year is favourable or unfavourable. All the sales recorded in the income statement are on credit. For your analysis, assume that all other things have remained constant. Apply your analysis in very general terms. All values should be accurate to at least two decimal places.

Allarco Inc.Income StatementFor Years Ended December 31, 2014, 2013, and 2012 201420132012Sales$479,200$469,400$506,800Cost of goods sold128,600119,300151,300Gross profit from sales350,600350,100355,500Operating expenses150,400177,800160,600Income from operations200,200172,300194,900Interest expense2,8502,7502,900Income before taxes197,350169,550192,000Income taxes23,40027,60028,000Net income$173,950$141,950$164,000

Allarco Inc.Balance SheetDecember 31, 2014, 2013, and 2012Assets201420132012Cash$57,300$67,700$63,600Short-term investments60,00051,00048,000Accounts receivable, net37,50037,00034,100Merchandise inventory46,10049,60049,600Prepaid expenses4,8004,2005,000Notes receivable, due in 20177,0007,0006,500Plant assets, net311,000368,000307,000Total assets$523,700$584,500$513,800Liabilities and Equity Accounts payable$36,300$32,000$32,700Salaries payable19,00016,40016,000Income taxes payable15,35018,00020,900Long-term note payable secured by mortgage on plant assets80,00085,00093,000Share capital, 50,000 shares160,000150,000150,000Retained earnings213,050283,100201,200Total liabilities and equity$523,700$584,500$513,800

Ratio20142013AnalysisAccounts receivable collection period (select one)