Presented here is selected information from the 2010 financial statements of Nike, Inc. (in U.S. $ millions) and Adidas AG (in euro millions):

Instructions
(a) Calculate the receivables turnover and average collection period for both companies, assuming all sales are credit sales. The industry average for the receivables turnover was 7.2 times and the average collection period was 51 days.
(b) Comment on the difference in the two companies' collection experiences.

Nike Net sales Allowance for doubtful accounts, beginning of year Allowance for doubtful accounts, end of year Accounts receivable (gross), beginning of year Accounts receivable (gross), end of year Adidas $19,014 11,990 124 127 1,553 1,794 2,884 2,766