Sensitron and Douglas Tools Manufacture and Market Power Tools and Accessories.Sensitron

Essay

Sensitron and Douglas Tools manufacture and market power tools and accessories.Sensitron targets customers in the professional contractor market,while Douglas Tools focuses on home users and professionals.Selected financial data for the companies appears below.
$\begin{array}{lrrr}\text { Sensitron } & \mathbf{2 0 1 0} & \mathbf{2 0 0 9} & \mathbf{2 0 0 8} \\\text { Sales } & \$ 2,109,100 & \$ 2,095,700 & \$ 2,175,700 \\\text { Average Accounts Receivable } & 564,500 & 608,650 & 631,072 \\\text { Change in Sales from previous year } & 0.64 \% & -3.68 \% & 11.83 \% \\& & & \\\text { Douglas Tools } & \mathbf{2 0 1 0} & \mathbf{2 0 0 9} & \mathbf{2 0 0 8} \\\text { Sales } & \$ 4,394,000 & \$ 4,245,600 & \$ 4,474,900 \\\text { Average Accounts Receivable } & 718,800 & 745,850 & 803,150 \\\text { Change in Sales from previous year } & 3.50 \% & -5.12 \% & 0.59 \%\end{array}$

Required:
1. Calculate the accuunts recervale turnover ratad far each firm far year 2010, 2009, 2008.
2. Suggest reasans far the differences in the accuunts receivable tuncver ratios far these two firms.