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:

	Aer Lingus					WestJet Airlines
		2012		2011			2012		2011
Net revenues		1,393,284		1,288,309			3,427,409		3,071,540
Trade receivables (net)		42,273		29,138			37,576		34,122

Required:

1-a.	Compute the receivable turnover ratio for each company for 2012: (Do not round intermediate calculations and round your final answers to 1 decimal place.)

1-b.	Compute the average collection period for each company for 2012: (Round your intermediate calculations to 1 decimal place and final answers to the nearest whole number. Use 365 days a year.)

2.

Based on your computations for (1), which companys trade receivables appear to be the more liquid asset?

	Aer Lingus
	WestJet Airlines

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?

	Yes
	No