Analyzing accounts receivable for two companies. The annual reports of Dell Computer and Sun Microsystems, two manufacturers of computers, reveal the information below for the current year (amounts in millions). Dell Computer sells custom-order personal computers, primarily to individuals. Sun Microsystems sells higher-end computers and Internet software.

primarily to businesses.

Dell Sun Microsystems Sales Accounts Receivable, January 1 . .

Accounts Receivable, December 31

$41,444 $11,434 2,586 2,745 3,635 2,381

a. Compute the accounts receivable turnover for each company.

b. Compute the average number of days that accounts receivable are outstanding for each company.

c. Why do the accounts receivable turnovers of these two companies differ?