Presented here is basic financial information from the 1995 annual reports of Goodyear Tire and Rubber Co. and Cooper Tire and Rubber Co.:

\section*{Instructions}

(a) Calculate the receivables turnover ratio and average collection period for both companies. Comment on the difference in their collection experiences.

(b) Calculate the January 1 and December 31 ratio of allowance for doubtful accounts to gross accounts receivable for each company. Comment on any apparent differences in their credit-granting practices.

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Sales Allowance for doubtful accounts, Jan. 1 Allowance for doubtful accounts, Dec. 31 Accounts receivable balance (gross), Jan. 1 Accounts receivable balance (gross), Dec. 31 Goodyear (in millions) Cooper (in thousands) $1,494,622 $13,165.9 54 3,600 56.2 3,600 1,578.7 224,837 1,671.2 260,649