Sensitron and Douglas Tools Manufacture and Market Power Tools and Accessories.Sensitron

question 65

Essay

Sensitron and Douglas Tools manufacture and market power tools and accessories.Sensitron targets customers in the professional contractor market,while Douglas Tools focuses on home users and professionals.Selected financial data for the companies appears below.
$\begin{array}{lrrr}\text { Sensitron } & \mathbf{2 0 1 0} & \mathbf{2 0 0 9} & \mathbf{2 0 0 8} \\\text { Sales } & \$ 2,109,100 & \$ 2,095,700 & \$ 2,175,700 \\\text { Average Accounts Receivable } & 564,500 & 608,650 & 631,072 \\\text { Change in Sales from previous year } & 0.64 \% & -3.68 \% & 11.83 \% \\& & & \\\text { Douglas Tools } & \mathbf{2 0 1 0} & \mathbf{2 0 0 9} & \mathbf{2 0 0 8} \\\text { Sales } & \$ 4,394,000 & \$ 4,245,600 & \$ 4,474,900 \\\text { Average Accounts Receivable } & 718,800 & 745,850 & 803,150 \\\text { Change in Sales from previous year } & 3.50 \% & -5.12 \% & 0.59 \%\end{array}$

Required:
1. Calculate the accuunts recervale turnover ratad far each firm far year 2010, 2009, 2008.
2. Suggest reasans far the differences in the accuunts receivable tuncver ratios far these two firms.

---

Definitions:

Efficient Stress

The concept that a certain level of stress can actually enhance performance by motivating individuals to reach their full potential.

Statutory Stress

Stress experienced as a result of obligations or pressures stemming from laws or statutes.

Feeling-Type

Refers to a personality trait characterized by the tendency to make decisions based on emotions, values, and personal considerations rather than objective analysis.

Cognitive-Type

A category or classification based on styles of perception, thinking, and problem-solving.