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Accounts receivable turnover and days sales in receivables
For two recent years, Robinhood Company reported the following:
| | 20Y9 | 20Y8 |
| Sales | $8,576,000 | $7,250,000 |
| Accounts receivable: | | |
| Beginning of year | 650,000 | 600,000 |
| End of year | 630,000 | 650,000 |
a. Determine the accounts receivable turnover for 20Y9 and 20Y8. Round answers to one decimal place.
20Y8: 11.6
20Y9: 13.4
b. Determine the days sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculations to one decimal place.
20Y8: ____
20Y9: ____
c. Are the changes in the accounts receivable turnover and days sales in receivables from 20Y8 to 20Y9 favorable or unfavorable?
Favorable
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