AutoZone, Inc., claims to be the nations leading auto parts retailer. It sells replacement auto parts directly

AutoZone, Inc., claims to be €œthe nation€™s leading auto parts retailer.€ It sells replacement auto parts directly to the consumer. BorgWarner, Inc., has over 17,000 employees and produces automobile parts, such as transmissions and cooling systems, for the world€™s vehicle manufacturers. The following data were taken from these companies€™ 2013 annual reports. All dollar amounts are in thousands.

Required
a. Before performing any calculations, speculate as to which company will take the longest to collect its accounts receivable. Explain the rationale for your decision.
b. Calculate the accounts receivable turnover ratios for AutoZone and BorgWarner.
c. Calculate the average days to collect accounts receivable for AutoZone and BorgWarner.
d. Do the calculations from Requirements b and c confirm your speculations in Requirement a?

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Fiscal Years Ending BorgWarner December 31, 2013 Auto40ne August 31,2013 $9,147,530 171,638 Sales Accounts receivable $7,436,600 1,248,500