Financial analysts have computed the following ratios for Firm X and several industries where Firm X has significant operations.Evaluate Firm X’s performance relative to each industry. What factors might account for the differences observed?

Accounts Receivable Ratios Industry Comparisons Apparel Food Firm X Manufacturers Stores Accounts receivable as a percentage of sales 7. 6% 13. 5% 1. 4%

Collection period 28 days 48 days 5 days Allowance as a percentage of accounts receivable 13. 4% 2. 5% 0. 9%