A company's accounts receivable balance is $350,000, and its annual sales are $2,800,000. What is the average collection period (or days sales outstanding)? a. 45.63 days b. 32.50 days c. 36.45 days d. 40.75 days

A company's accounts receivable balance is $350,000, and its annual sales are $2,800,000. What is the average collection period (or days sales outstanding)? a. 45.63 days b. 32.50 days c. 36.45 days d. 40.75 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

100%

A company's accounts receivable balance
is $350,000, and its annual sales are
$2,800,000. What is the average collection
period (or days sales outstanding)?
a. 45.63 days
b. 32.50 days
c. 36.45 days
d. 40.75 days

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