The following information was obtained from Acamac Corp.'s (Acamac) 2018 financial statements: Sales (all sales are on

Question:

The following information was obtained from Acamac Corp.'s (Acamac) 2018 financial statements:
Sales (all sales are on credit).........................$4,150,000
Accounts receivable on March 31, 2018...........520,000
Accounts receivable on March 31, 2017............475,000

Required:
a. Calculate Acamac's turnover ratio for 2018.
b. Calculate the average collection period for during 2018.
c. Is Acamac's average collection period for 2018 reasonable? What information would you require to answer this question? Explain. Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...