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:
Book Value
The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation.
Extraordinary Gains
Gains that arise from events that are both unusual and infrequent, not expected to recur regularly in the normal course of business.
Value-Irrelevant Earnings
Earnings that have no impact on the market price of a company's stock.
High Quality
In the context of products or services, high quality refers to the degree to which they meet or exceed customers' expectations and standards.
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