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 accounts receivable turnover ratio for 2018.
b. Calculate the average collection period for accounts receivable during 2018.
c. Is Acamac's average collection period for 2018 reasonable? What information would you require to answer this question? Explain.



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  • CreatedFebruary 26, 2015
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