Assume Loblaw Companies Limited reported these figures in millions of dollars:
_________________________________________________2017 ________2016
Net sales.................................................................................. $29,384 .....$28,640
Receivables at end of year............................................................ 885 ...........728
Requirements
1. Compute Loblaw's average collection period during 2017.
2. Was Loblaw's collection period long or short? Potash Corporation of Saskatchewan takes 36 days to collect its average level of receivables. FedEx, the overnight shipper, takes 40 days. What causes Loblaw's collection period to be so different?