
(a) (1)
Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In other words, it indicates the number of times the average amount of net accounts receivables collected during a particular period.
Average collection period:
Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.
To calculate: The accounts receivable turnover of Incorporation A and Incorporation WM for 2015.
(2)
To calculate: The average collection period of Incorporation A and Incorporation WM for 2015.
(b)
To conclude: The Efficiency of management in handling accounts receivable.

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