Q2) The following information is available from the financial statements included in Form 10-K for fiscal years 2014 and 2013 for

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Assume all sales are on credit. Calculate the average length of time at takes each company to collect its accounts receivable. Compare the two companies on the basis of your calculations in part (1) and (2). (Explanation should be not be more than 4 lines)

Q2) The following information is available from the financial statements included in Form 10-K for fiscal years 2014 and 2013 for Under Armour, Inc. and Columbia Sportswear Company (in thousands of dollars): Under Armour, Inc. Columbia Sportswear Company Net revenues (Net sales for Under Armour, Inc. & Columbia Sportswear) for the year ended December 31, 2014 $3,084,370 $2,100,590 Accounts receivable, net: December 31, 2014 279,835 344,390 December 31, 2013 209,952 306,878 Required: Calculate the accounts receivable turnover ratios for both companies for the most recent year. Assume all sales are on credit. Calculate the average length of time at takes each company to collect its accounts receivable. Compare the two companies on the basis of your calculations in part (1) and (2). (Explanation should be not be more than 4 lines)

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