Question
Real World Financials ABC Corporation reported the following information in its financial statements for three successive quarters ($ in millions): Three Months Ended 9/30/2017 (Q1)
Real World Financials ABC Corporation reported the following information in its financial statements for three successive quarters ($ in millions):
| Three Months Ended | |||||||||||
| 9/30/2017 (Q1) | 6/30/2017 (Q4) | 3/31/2017 (Q3) | |||||||||
| Balance sheets: | |||||||||||
| Accounts receivable, net | $ | 18,961 | $ | 19,850 | $ | 12,940 | |||||
| Income statements: | |||||||||||
| Sales revenue | $ | 24,590 | $ | 23,370 | $ | 22,200 | |||||
Required:
Compute the receivables turnover ratio and the average collection period for Q1 and Q4. Assume that each quarter consists of 91 days. (Round average accounts receivable answers to nearest whole dollar. Enter your answers in millions. Round "Turnover ratio" answers to 3 decimal places.)
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Principles of Auditing and Other Assurance Services
Authors: Ray Whittington, Kurt Pany
19th edition
978-0077804770, 78025613, 77804775, 978-0078025617
