Question: Information from comparative income statements and balance sheets for Microsoft and IBM is given below. (Amounts are in millions.) Use this information to answer the

Information from comparative income statements and balance sheets for Microsoft and IBM is given below. (Amounts are in millions.)

Use this information to answer the following questions:
1. Without doing any computations, which company do you think has the lowest average collection period?
2. Compute Microsoft€™s average collection period for 2008.
3. Compute IBM€™s average collection period for2008.

Microsoft IBM 2008 2007 Sales Accounts receivable $60,420 13,589 S51,122 11,338 $103,630 S98,786 11,428 10,906

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