Please provide correct answer not use gpt.. A firm with an average collection period of 35 days has an averageinvestment of $70,000 in accounts receivable. Assuming a 365-day year,the firm's annual credit sales are:A. $2,000.B. $730,000.C. $2,450,000.

Detailed explanation:To find the company's annual credit sales, use the formula for the average…

Answered: A firm with an average collection…

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 firm with an average collection period of 35 days has an average investment of $70,000 in accounts receivable. Assuming a 365-day year, the firm's annual credit sales are: A. $2,000. B. $730,000. C. $2,450,000.