Contemporary Co., Inc., the electronics and appliance chain, reported these figures in millions of dollars:

Requirements
1. Compute Contemporary€™s average collection period during 2011.
2. Is Contemporary€™s collection period long or short? Kurzwel Networks takes 36 days to collect its average level of receivables. Damascus, the overnight shipper, takes 35 days. What causes Contemporary€™s collection period to be sodifferent?

Transcribed Image Text:

2011 2010 Net sales$572,000 Receivables at end of year. $601,000 3,880 4,810