The following information has been extracted from the annual reports of Lilydale Ltd and Monbulk Ltd.

	Lilydale Ltd	Monbulk Ltd
Sales (net credit) revenue for year Allowance for Doubtful Debts, 1/7/14 Allowance for Doubtful Debts, 30/6/15 Accounts receivable (gross) 1/7/14 Accounts receivable (gross) 30/6/15	$2 950 300 17 100 19 780 722 650 485 800	$2 204 300 27 100 28 100 368 000 384 200

Required

A. Calculate the receivables turnover ratio and average collection period for both companies. Comment on the difference in their collection experiences.

B. Compare the success or otherwise of their cash collection policies, given that the average receivables turnover for the industry in which the companies operated is 7. Credit terms for both companies are 2/10, n/30.