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

Requirements
1. Compute Moderns average collection period during 2011.
2. Is Moderns collection period long or short? Viflex Networks takes 40 days to collect its average level of receivables. Domarko, the overnight shipper, takes 34 days. What causes Moderns collection period to be sodifferent?

Transcribed Image Text:

2011 2010 Net sales....573,000 Receivables at end of year $604,000 3,910 4,710