Discuss on “4.16 Calculating and Interpreting Accounts Receivable TurnoverRatios.

Discuss on “4.16 Calculating and Interpreting Accounts Receivable TurnoverRatios.Microsoft Corporation(Microsoft) andOracle Corporation(Oracle) engage inthe design, manufacture, and sale of computer software. Microsoft sells and licenses a widerange of systems and application software to businesses, computer hardware manufacturers,and consumer retailers. Oracle sells software for information management almost exclusively tobusinesses. Exhibit 4.23 presents selected data for the two firms for three recent years.REQUIREDREQUIREDa.Calculate the accounts receivable turnover ratio for Microsoft and Oracle for Year 1, Year2, and Year 3.b.Suggest possible reasons for the differences in the accounts receivable turnovers ofMicrosoft and Oracle during the three-year period.c.Suggest possible reasons for the trends in the accounts receivable turnover for the twofirms over the three-year period.”