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Accounts Receivable Turnover and Days' Sales in Receivables Classic Company reported the following:
For the Period Ending Year 2 Year 1 Sales $4,635,500 $4,586,590 Accounts receivable 456,250 470,850 Assume that accounts receivable were $419,750 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 for Year 2 and Year 1. Round to one decimal place. Use 365 days per year in your calculations. Year 2: days Year 1: days
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