EarthLink, Inc., is a nationwide Internet Service Provider (ISP). EarthLink provides a variety of services to its customers, including narrowband access, broadband or high-speed access, and Web hosting services. For two recent years, EarthLink reported the following (in thousands):

Assume that the accounts receivable (in thousands) were $30,733 at January 1, 2005.
1. Compute the accounts receivable turnover for 2006 and 2005. Round to one decimal place.
2. Compute the days' sales in receivables at the end of 2006 and 2005.
3. What conclusions can be drawn from (1) and (2) regarding EarthLink's efficiency in collecting receivables?
4. Given the nature of EarthLink's operations, do you believe EarthLink's accounts receivable turnover ratio would be higher or lower than a typical manufacturing company, such as Boeing or Kellogg Company?Explain.

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Year Ending Dec. 31, 2005 Dec. 31, 2006 $1,290,072 Net sales $1,301,267 51,054 Accounts receivable at end of year 36,033