Accounts Receivable Turnover

For the Year 2 and Year 1, Montague Inc. reported the following:

	Year 2		Year 1
Sales	$5,304,910		$5,204,900
Accounts receivable	624,150		609,550

Assume that the accounts receivable were $521,950 at the beginning of Year 1.

Lassiter Company reported the following:

	Year 2		Year 1
Sales	$1,286,990		$1,303,780
Accounts receivable	153,300		160,600

Assume that accounts receivable were $182,500 at the beginning of Year 1.

a. Compute the average accounts receivable turnover ratio for Montague Inc. and Lassiter Company for Year 2 and Year 1. Round to one decimal place.

Montague Inc.:
Lassiter Company:

b. Does Lassiter Company or Montague Inc. have the higher average accounts receivable turnover ratio?