The information below has been extracted from the financial statements of Crystal Craft Ltd.

Required
A. Calculate the following for years 2016 and 2017:
1. Receivables turnover ratio
2. Average collection period of accounts receivable.
B. Using your calculations in requirement A, comment on the credit collection policies of the company. What additional information could be used to make an analysis of cash collection policies more meaningful?

Cash at bank Marketable securities Accounts receivable Sales revenue (all sales on credit) Cost of sales 2015 $ 44000 88 000 102 000 1 108 000 672 000 2016 $ 40 000 100 000 108 000 1 120 000 680 000 2017 S 36 000 96 000 124 000 1 130 000 700 000