A company has the following information: Net credit sales = $400,000 Net income = $100,000 Average total assets = $80,000 Average accounts receivable = $20,000 What is the company's average collection period (rounded to the nearest whole day)? O 73 days. O 18 days. O 5 days. O 9 days.
A company has the following information: Net credit sales = $400,000 Net income = $100,000 Average total assets = $80,000 Average accounts receivable = $20,000 What is the company's average collection period (rounded to the nearest whole day)? O 73 days. O 18 days. O 5 days. O 9 days.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company has the following information:
Net credit sales = $400,000
Net income = $100,000
Average total assets = $80,000
Average accounts receivable = $20,000
What is the company's average collection period (rounded to the nearest whole day)?
O 73 days.
O 18 days.
O 5 days.
O 9 days.
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