The following information (in $ millions) was taken from recent annual reports of Kellogg Company and General Mills, Inc.
__________________________________________________Kellogg_________General Mills
Sales revenue...........................................................$13,525.....................$17,630
Average accounts receivable balance...............................$ 1,310.......................$ 1,435
Required
a. Calculate each company's accounts receivable turnover and average collection period.
b. Which company is doing the best job of managing accounts receivable? How did you reach your conclusion?
c. What additional information would help you in assessing the companies' accounts receivable management?