Question: Stream Media Inc. and Techtronics are competitors in the same industry. The following information was summarized from a recent annual report of Stream Media

Stream Media Inc. and Techtronics are competitors in the same industry. The following information was summarized from a recen

Required: 1. Calculate the accounts receivable turnover ratios for Stream Media and Techtronics for the most recent year. 2.

Stream Media Inc. and Techtronics are competitors in the same industry. The following information was summarized from a recent annual report of Stream Media Inc.: (In millions) Receivables: December 31, 2017 December 31, 2016 Revenue for the year ended: December 31, 2017 31, 201 (In millions) $ 1,968 Accounts and notes receivable, net December 31, 2017 December 31, 2016 Revenues for the year ended: December 31, 2017 December 31, 2016 642 46,980 The following information was summarized from a recent annual report of Techtronics: 40,023 $ 246 264 4,335 4,251 Required: 1. Calculate the accounts receivable turnover ratios for Stream Media and Techtronics for the most recent year. 2. Calculate the average collection period, in days, for both companies for the most recent year. Comment on the reasonableness of the collection periods for these companies considering the nature of their business. 3. Which company appears to be performing better? What other information should you consider in determining how these companies are performing?

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