CP8-5 (Algo) Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect [LO 8-4] Locklear Toymaking and Oxendine Corporation are two of the largest and most successful toymakers in the world, in terms of the products they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following information reported in their annual reports (amounts in millions). Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance 2018 $ 4,356 1,098 15 1,083 Locklear 2017 $ 3,831 704 18 686 2016 $ 4,518 830 19 811 2018 $ 2,502 922 24 898 Oxendine 2017 $ 2,468 1,002 26 976 2016 $ 2,622 574 25 549 Required: 1. Calculate the receivables turnover ratios and days to collect for Locklear and Oxendine for 2018 and 2017. TIP: In your calculations, use average Accounts Receivable, Net of Allowance. 2-a. Which of the companies was quicker to convert its receivables into cash in 2018? 2-b. Which of the companies was quicker to convert its receivables into cash in 2017? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Calculate the receivables turnover ratios and days to collect for Locklear and Oxendine for 2018 and 2017. TIP: In your calculations, use average Accounts Receivable, Net of Allowance. (Use 365 days in a year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.) Show less A 2018 2017 Locklear Oxendine Locklear Oxendine Receivables Turnover Ratio Days to Collect