Question
Macroware Corporation reported the following information in its financial statements for three successive quarters ($ in millions): Three Months Ended 6/30/2020 (Q4) 3/31/2020 (Q3) 12/31/2019
Macroware Corporation reported the following information in its financial statements for three successive quarters ($ in millions):
| Three Months Ended | |||
|---|---|---|---|
| 6/30/2020 (Q4) | 3/31/2020 (Q3) | 12/31/2019 (Q2) | |
| Balance Sheets: | |||
| Accounts receivable, net | $ 22,561 | $ 19,895 | $ 12,985 |
| Income statements: | |||
| Sales revenue | $ 24,635 | $ 23,415 | $ 22,290 |
Required:
Compute the receivables turnover ratio and the average collection period for Q4 and Q3. Assume that each quarter consists of 91 days.
Note: Round "Receivables turnover ratio" answers to 3 decimal places and "Average collection period" answers to 2 decimal places.
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Financial Accounting The Impact On Decision Makers
Authors: Curtis L. Norton, Gary A. Porter
6th Edition
9781439037119, 1439037116
