Question: Suppose the information below is from the 2017 financial statements and accompanying notes of The Scotts Company, a major manufacturer of lawn-care products.
Instructions: Answer each of the following questions.
(a) Calculate the accounts receivable turnover and average collection period for 2017 for the company.
(b) Is accounts receivable a material component of the company's total 2017 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' 2017 concentrated receivables.
(e) Comment on the informational value of Scotts' Note 19 on concentrations of credit risk.