Suppose the following financial information (in millions) is from the 2014 annual reports of Redbird Sportswear and The Carwright Company.

Redbird Carwright Sales revenue $1,200.0 $1,350.0 Allowance for doubtful accounts, Jan. 1 6.7 12.5 Allowance for doubtful accounts, Dec. 31 7.4 14.8 Accounts receivable balance (gross), Jan. 1 293.3 216.5 Accounts receivable balance (gross), Dec. 31 307.2 202.9 Instructions Calculate the accounts receivable turnover and average collection period for both companies.

Comment on the difference in their collection experiences.

AppendixLO1