Tadoussac Inc. and Sturgis Ltd. are plumbing supply companies operating in eastern Canada. Both companies are looking for investment to help with their expansion plans. You work for a small venture capital firm that is considering investing in one of the companies. You've been asked to look at the accounts receivable of the two and provide a report. You have the following information

Required:
Calculate the accounts receivable turnover ratio and the average collection period for 2017 and 2018. Provide an interpretation of the results and provide some possible explanations for any differences you find. What additional information would you want to understand any differences?

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Tadoussac Inc. Sturgis Ltd. 2018 2017 2016 2018 2017 12,100 $205,000 14,900 2016 $245,000$225,000 Accounts receivable Allowance for uncollectable amounts Net accounts receivable Sales (all credit) $216,900 $221,000 S2 28,000 217,000 1,215,000 26,800 198,200 1,119,000 24,900 192,000 15,200 205,800 1,530,001 197,200 1,481,000 14,000 191,000