A company has net income of $195,000, a profit margin of 8.3 percent, and an accounts receivable balance of $134,370. Assuming 70 percent of sales are on credit, what is the company’s days’ sales in receivables? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
A company has net income of $195,000, a profit margin of 8.3 percent, and an accounts receivable balance of $134,370. Assuming 70 percent of sales are on credit, what is the company’s days’ sales in receivables? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A company has net income of $195,000, a profit margin of 8.3 percent, and an accounts receivable balance of $134,370. Assuming 70 percent of sales are on credit, what is the company’s days’ sales in receivables? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Transcribed Image Text:A company has net income of $195,000, a profit margin of 8.3 percent, and an accounts
receivable balance of $134,370. Assuming 70 percent of sales are on credit, what is the
company's days' sales in receivables? (Use 365 days a year. Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
Days' sales in receivables
days
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