The table below contains selected financial information included in the 2011 financial statements of Del Monte Foods Co. and Smithfield Foods Inc.

Required:
1. Calculate the 2011 receivables turnover ratio and average collection period for both companies. Evaluate the management of each company’s investment in receivables.
2. Obtain annual reports from three corporations in the same primary industry and compare the management of each company’s investment inreceivables.

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$ in millions) Del Monte Smithfield 2011 2010 2011 2010 Balance sheet: S 709.6 621.5 12.2027 11,202.6 Accounts receivable, net S 224.6 $ 187.3 Income statement: Net sales 3,627.0 3,739.8