Information from comparative income statements and balance sheets for Microsoft and IBM is given below. (Amounts are in millions.)

Use this information to answer the following questions:
1. Without doing any computations, which company do you think has the lowest average collection period?
2. Compute Microsoft€™s average collection period for 2008.
3. Compute IBM€™s average collection period for2008.

Transcribed Image Text:

Microsoft IBM 2008 2007 Sales Accounts receivable $60,420 13,589 S51,122 11,338 $103,630 S98,786 11,428 10,906