The following account balances are taken from the records of the Faraway Travel Agency:

Faraway extends credit terms requiring full payment in 60 days, with no discount for early payment.

Required
1. Compute Faraway€™s accounts receivable turnover ratio for 2014 and 2013.
2. Compute the number of days€™ sales in receivables for 2014 and 2013. Assume 360 days in a year.
3. Comment on the efficiency of Faraway€™s collection efforts over the two-year period.

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December 31 2013 2014 2012 Accounts receivable $150,000 $100,000 $80,000 2014 2013 Net credit sales $600,000 $540,000