Presented here are the average days to collect accounts receivable for four companies in different industries. The

Question:

Presented here are the average days to collect for four companies in different industries. The data are for 2010.

Required
Write a brief memorandum that provides possible answers to each of the following questions:
a. Why would a company that manufactures and sells airplanes (Boeing) and a company that manufacturers and sells automobiles (Ford) collect their accounts receivables in such relatively short times?
b. Why would a company that sells expensive jewelry (Zales) collect its receivables so much quicker than a company that sells toothpaste and soap (Procter & Gamble)?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...