Packaging Corporation of America produces containerboard and white papers. KapStone Paper and Packaging Corporation manufactures unbleached kraft paper products and corrugated products. Financial statement data for these two companies follow:

Required:
1. Determine the receivables turnover ratios for both companies for 2012, 2013, and 2014.
2. Which company collected its accounts receivable more quickly in 2014?
3. Which company showed more improvement in accounts receivable collection over the period presented?
4. What factors might explain why these two companies, which operate in similar markets, have different accounts receivable turnover ratios?
5. How does the way we compute average accounts receivable-by averaging the beginning and ending balances-potentially distort the accounts receivable turnover ratio? How could this potential distortion be mitigated?

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Packaging Corporatlon of America ($ in millions of dollars) Sales Accounts receivable at December 31 2011 2012 2013 2014 $2,843.9 $3,665.3 $5,852.6 $320.0 352.1 643.1 646.1 KapStone Paper and Packaging Corporation Sales Accounts receivable at December 31 $1,748.2 232.3 $2,300.9 228.7 $1,216.6 $108.3