(Learning Objective 5: Analyzing a company’s fi nancial statements) Modern Limited, the electronics and appliance chain, reported these fi gures in millions of dollars:

❙ Requirements 1. Compute Modern’s average collection period during 20X7.

2. Is Modern’s collection period long or short? Vifl ex Networks takes 25 days to collect its average level of receivables. Domarko, the overnight shipper, takes 35 days. What causes Modern’s collection period to be so different?

(Group B)