Provide correct answer general Accounting A company has inventory of $3 million and current liabilities of $2million. Cost of sales is $10 million annually and revenue is $15million. What would be the accounts receivable days if the currentratio is 2? Assume 365 days in a year.

Step 1: Define Accounts Receivables DaysAccounts receivables days is the average number of days…

Answered: A company has inventory of $3 million…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 3P

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A company has inventory of $3 million and current liabilities of $2 million. Cost of sales is $10 million annually and revenue is $15 million. What would be the accounts receivable days if the current ratio is 2? Assume 365 days in a year.