Calculate MHR's accounts receivable turnover ratio for the years ended December 31, 2008 and 2007 (assume account receivable on December 31, 2006, was $17,948,000). What is the average collection period of accounts receivable for the two years? Do the accounts receivable turnover ratio and the average collection period indicate that MHR is managing its receivables well? Explain.

MHR’s consolidated balance sheets, statements of income, and statements of cash flow, along with extracts from the notes to the financial statements are provided in Exhibit 6.5.

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EXHIBIT 6.5 McGraw-Hill Ryerson: Extracts from Financial Statements Balance Sheets McGraw-Hill Ryerson Limited. Incorporated under the laws of Ontario (In Thousands of Dollars) A at December 31 2008 2007 Assets Current Cash and cash equivalents 43,856 35,646 Accounts receivable (net of allowance for sales returns of $6,986; 2007-$7,206] [note 10] 14.285 14,489 Due from parent and affiliated companies [note 2] 1.827 1,870 Inventories [note 4] 7,082 7,717 Prepaid expenses and other 296 354 Future tax assets (note 7] 2,263 2,390 Total current assets Capital assets, net [note 51 69,609 62,466 16.048 17,247 Other assets, net (note 6] Future tax assets (note 7] 16,540 14,365 623 582 102,820 94,660 Liabilities and Shareholders' Equity Current Accounts payable and accrued charges 10,721 10.821 Dividends payable 13,976 Income taxes payable 359 972 Due to parent and affiliated companies (note 2] 5,669 5,454 Total current liabilities 30,725 17.247