Financial statement data for years ending December 31 for Robinhood Company follow:
20Y9 20Y8
Sales $7,906,000 $6,726,000
Accounts receivable: Beginning of year 600,000 540,000
End of year 580,000 600,000
a. Determine the accounts receivable turnover for 20Y9 and 20Y8.
b. Determine the days' sales in receivables for 20Y9 and 20Y8. Use 365 days.
c. Does the change in accounts receivable turnover and the days' sales in receivables from 20Y8 to 20Y9 indicate a favorable or unfavorable change?