Presented here are the average days to collect accounts receivable for four companies in different industries. The

Question:

Presented here are the average days to collect for four companies in different industries. The data are for 2013.
Average Days to Collect
Company Accounts Receivable
Boeing (aircraft manufacturer) ............ 27
Colgate-Palmolive Company (consumer products manufacturer) .. 34
Ethan Allen (furniture retailer) ............... 6
General Motors (auto sales only) ............. 22
Required
Write a brief memorandum that provides possible answers to each of the following questions:
a. Why would a company that manufactures and sells airplanes (Boeing) and a company that manufactures and sells automobiles (General Motors) collect their accounts receivables in such relatively short times?
b. Why would a company that sells furniture (Ethan Allen) collect its receivables so much quicker than a company that sells toothpaste and soap (Colgate-Palmolive)?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...