Presented here are the average days to collect accounts receivable for four companies in different industries. The data are for 2016.

Required
Write a brief memorandum that provides possible answers to each of the following questions:
a. Why would a company that manufactures and sells airplanes (Boeing) and a company that manufactures and sells automobiles (General Motors) collect their accounts receivables in such relatively short times?
b. Why would a company that sells furniture (Ethan Allen) collect its receivables so much quicker than a company that sells toothpaste and soap (Colgate-Palmolive)?

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Average Days to Collect Accounts Receivable Company Boelng (aircraft manufacturer) Colgate-Palmolive Company (consumer products manufacturer) 34 34 Ethan Allen (furniture retailer) General Motors (auto sales only) 22