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CP8-5 (Algo) Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect [LO 8-4] Morgan Toys incorporated and Locklear Toymaking are two of

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CP8-5 (Algo) Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect [LO 8-4] Morgan Toys incorporated and Locklear Toymaking are two of the largest and most successful toymakers in the world, in terms of the products they sell and their recelvables management practices. To evaluate their ability to collect on credit sales, consider the following information reported in their annual reports (amounts in millions). Required: 1. Colculate the receivables turnover tatios and days to collect for Morgan and Locklear for 2018 and 2017. TIP: In your calculations, use overage Accounts Receivable. Net of Allowance. 2-a. Which of the componies 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

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