The following information is available from the annual reports of Nite and Day Companies. 
Instructions
(a) Based on the preceding information, compute the following for each company:
1. Accounts receivable turnover. (Assume all sales were credit sales.)
2. Average collection period.
(b) What conclusion concerning the management of accounts receivable can be drawn from these data?
Definitions:
Collecting Bank
A bank that processes checks and other negotiable instruments on behalf of a depositor, collecting funds from the bank on which the instruments are drawn.
Restrictive Endorsement
A limitation placed on the use of a check or other negotiable financial instrument, specifying conditions under which it can be transferred or cashed.
Stop Payment Order
A request made to a bank to cancel a check or payment that has not been processed yet.
Subrogation
The legal process by which one party stands in for another to claim restitution or indemnity from a third party for a loss or damage.
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