The financial statements of Midwest Tours are given below. Refer to the financial statements of Midwest Tours.The firm's average collection period for 2009 is
A)69.35.
B)69.73.
C)68.53.
D)67.77.
E)68.52.

Question

The financial statements of Midwest Tours are given below.  Refer to the financial statements of Midwest Tours.The firm's average collection period for 2009 is
A)69.35. 
B)69.73. 
C)68.53. 
D)67.77. 
E)68.52.

Quizplus · Accepted Answer

AR turnover = $2,500,000/[($500,000 + $450,000)) 2] = 5.26; ACP = 365/5.26 = 69.35 days.

The Financial Statements of Midwest Tours Are Given Below