Aer Lingus provides passenger and cargo transportation services from Ireland to markets in the United Kingdom, continental Europe, and the United States. It uses the euro as the monetary unit for financial reporting purposes. WestJet Airlines is a Canadian airline that serves more than 65 destinations, mainly in Canada but also in the United States, the Caribbean, and Mexico. The net sales and average balances of trade receivables for Aer Lingus and WestJet Airlines for a recent fiscal year are shown below.

Required:
1. Compute the following for each company:

a. The receivable turnover ratio.

b. The average collection period.
2. Based on your computations for (1), which company's trade receivables appear to be the more "liquid" asset? Explain.

3. Both companies use different currencies to prepare their financial statements. Does the use of different currencies affect the interpretation of the turnover ratio and the average collection period? Explain.

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Aer Lingus WestJet Airlines 2009 Net revenues 1,205,739 2008 1,357,356 2009 $2,281,120 2008 $2,549,506 Trade receivables (net) 32.022 33,049 27,654 16,837