Question $1$

Average Collection Period $=$ Average Accounts Receivables $$ Average Daily Sales

This ratio is an estimate of the time $($measured in days$)$ that the company's accounts

receivables are outstanding. A higher ratio indicates a company's inefficiency in the

collection of receivables, and could lead to solvency issues. The ratio is computed by

dividing the average accounts receivable $($net of allowance for doubtful accounts$)$

during the year $($average accounts receivable $=$ average of the beginning balance of net

accounts receivable and the ending balance of accounts receivable balance$)$ by the

Total Net Sales Revenue per day $($assume $365$ days in a year$).$

Which of the following $4$ companies has the lowest Average Collection Period?

Exxon Mobile Corporation $($for the year $2021)$

Apple, Inc. $($for the year ended Sep $24,2022)$

CVS Health Corporation $($for the year ended December $31,2021)$

Amazon.com $($for the year ended Dec $31,2021)$