Consider the following information for two hi-tech companies:

Oxford, LTD Kendall, LTD

(Dollars in thousands)

Accounts receivable Beginning of year $ 9,915 $ 408 End of year 11,250 7,258 Sales for year 21,891 11,606 Required

a. Calculate the cash collected from customers for each firm.

b. Compute the quality of sales ratio for each firm.

c. What do these ratios indicate?