Please use this link to solve this question : Financial statements: http://files.shareholder.com/downloads/UARM/6012368969x0x937207/3E24CAC2-FE6C-48E9-A1B0-39C5AC9B3850/Under_Armour_2016_Annual_Report.pdf

1.Calculate Accounts Receivables Turnover Ratio and Average Collection Period for 2016 and 2015.

A tutor answered the following:

2016

Accounts Receivables Turnover Ratio= Net Sales/average accounts receivable

= 4825335/622,685 = 7.749239182

Average Collection Period = 365/accounts receivable turnover ratio

= 365/7.749239182=47.10 days

2015

Accounts Receivables Turnover Ratio= Net Sales/average accounts receivable

= 3,963,313/433,638 = 9.139681024

Average Collection Period = 365/accounts receivable turnover ratio

= 365/9.139681= 39.94 days

Question:

The book says that we need to add (beginning net trade accounts receivable + ending net trade accounts receivable)/2 to get average net trade accounts receivable. can you explain why we didn't use this method?