# Quasar, Inc. sells clothing, a

Quasar, Inc. sells clothing, accessories, and personal care products for men and women through its retail stores. Quasar reported the following data for two recent years:

 Year 2 Year 1 Sales \$1,904,205 \$1,877,925 Accounts receivable 175,200 \$167,900

Assume that accounts receivable were \$189,800 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: fill in the blank 1 Year 1: fill in the blank 2

b.  Compute the days’ sales in receivables for Year 2 and Year 1. Round interim calculations and final answers to one decimal place. Use 365 days per year in your calculations.

 Year 2: fill in the blank 3 days Year 1: fill in the blank 4 days

c.  The change in accounts receivable turnover from year 1 to year 2 indicates a(n) ______  in the efficiency of collecting accounts receivable and is a(n) ______ change. The change in the days’ sales in receivables indicates a(n) ______ change.

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