Annual reports of two manufacturing companies in the same industry reveal the following for a recent year (amounts in millions):

	Kellogg's		Quaker Oats
Sales	$3,753		$3,640
Accounts receivable, January 1	219		527
Accounts receivable, December 31	300		549

Required:

If required, round your intermediate and final answers to one decimal place.

A. Compute the accounts receivable turnover for each company.

Kellogg's	times per year
Quaker Oats	times per year

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

Kellogg's	days
Quaker Oats	days

C. Which of these two companies is managing its accounts receivable more efficiently? collects its accounts receivable more quickly than . However, may have more liberal credit and collection policies than in an effort to stimulate sales.