The information below and the notes on page 414 are from the 2004 financial statements and accompanying notes of The Scotts Company, a major manufacturer of lawn-care products.

(in millions) 2004 2003 Accounts receivable $ 321.4 $ 319.5 Allowance for uncollectible accounts 29.0 29.0 Sales 2,037.9 1,887.7 Total current assets 830.3 812.6 Instructions Answer each of the following questions.

(a) Calculate the receivables turnover ratio and average collection period for 2004 for the company.

(b) Is accounts receivable a material component of the company’s total current assets?

(c) Scotts sells seasonal products. How might this affect the accuracy of your answer to part (a)?

(d) Evaluate the credit risk of Scotts’ concentrated receivables.

(e) Comment on the informational value of Scotts’ Note 17 on concentrations of credit risk.