Evaluating Accounts Receivable Turnover for Competitors Procter & Gamble Company and Colgate-Palmolive Company report the following sales and accounts receivable balances ($ millions) for 2015 and 2014.

$ millions Procter & Gamble Colgate-Palmolive Sales Accounts Receivable Sales Accounts Receivable 2015 . . . . . . . . . . . . . . . $76,279 $4,861 $16,034 $1,427 2014 . . . . . . . . . . . . . . . 80,510 6,386 17,277 1,552

a. Compute the accounts receivable turnover and DSO for both companies for 2015.

b. Identify and discuss a potential explanation for the difference between these competitors’ accounts receivable ratios.