A company had an accounts receivable balance of $600,000 at the beginning of the year and $720,000 at the end of the year. Net credit sales during the year were $5,400,000. What was the average collection period of the receivables in terms of days?

A company had an accounts receivable balance of $600,000 at the beginning of the year and $720,000 at the end of the year. Net credit sales during the year were $5,400,000. What was the average collection period of the receivables in terms of days?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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Question

A company had an accounts receivable balance of
$600,000 at the beginning of the year and
$720,000 at the end of the year. Net credit sales
during the year were $5,400,000.
What was the average collection period of the
receivables in terms of days?

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