The information below is from the 2006 financial statements and accompanying notes of The Scotts Company, a major manufacturer of lawn-care products.

THE SCOTTS COMPANY
Notes to the Financial Statements
Note 17. Concentrations of Credit Risk
Financial instruments which potentially subject the Company to concentration of credit risk consist principally of trade accounts receivable. The Company sells its consumer products to a wide variety of retailers, including mass merchandisers, home centers, independent hardware stores, nurseries, garden outlets, warehouse clubs and local and regional chains. Professional products are sold to commercial nurseries, greenhouses, landscape services, and growers of specialty agriculture crops.
At September 30, 2006, 76% of the Company's accounts receivable were due from customers geographically located in North America. Approximately 79% of these receivables were generated from the consumer business with the remaining 21% due from customers of Scotts LawnService®, the professional businesses (primarily distributors), Smith & Hawken®, and Morning Song®. Our top 3 customers within the consumer business accounted for 53% of total consumer accounts receivable.
At September 30, 2005, 76% of the Company's accounts receivable were due from customers geographically located in North America. Approximately 83% of these receivable were generated from the Company's consumer business with the remaining 17% generated from customers of Scotts LawnService® and the professional businesses (primarily distributors). Our top 3 customers within the consumer business accounted for 80% of total consumer accounts receivable.
The remainder of the Company's accounts receivable at September 30, 2006 and 2005, were generated from customers located outside of North America, primarily retailers, distributors, nurseries and growers in Europe. No concentrations of customers or individual customers within this group account for more than 10% of the Company's accounts receivable at either balance sheet date.
The Company's three largest customers accounted for the following percentage of net sales in each respective period:

Sales to the Company's three largest customers are reported within the Company's North America segment. No other customers accounted for more than 10% of fiscal 2006, fiscal 2005 or fiscal 2004 net sales.

Instructions
Answer each of the following questions.
(a) Calculate the receivables turnover ratio and average collection period for 2006 for the company.
(b) Is accounts receivable a material component of the company's total current assets?
(c) Scotts sells seasonal products. How might this affect the accuracy of your answer to part (a)?
(d) Evaluate the credit risk of Scotts' concentrated receivables.
(e) Comment on the informational value of Scotts' Note 17 on concentrations of creditrisk.

(in millions) 2006 2005 380.4 323.3 Accounts receivable Allowance for uncollectible accounts Sales Total current assets 11.4 2,697. 2,3693 787.8 11.3 942.0 2006 2005 2004 Largest Customer 21.5% 23.5% 25.0% 2nd Largest Customer 11.2% 11.9% 12.9% 3rd Largest Customer 10.5% 97% 9.4%