A manufacturing company had total sales of $900,000 for the year, with 80% being credit sales. The average accounts receivable balance was $90,000. Assuming a 365-day year, what is the average collection period?

A manufacturing company had total sales of $900,000 for the year, with 80% being credit sales. The average accounts receivable balance was $90,000. Assuming a 365-day year, what is the average collection period?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1P: Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level...

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Get correct answer general accounting question

A manufacturing company had total sales of
$900,000 for the year, with 80% being credit sales.
The average accounts receivable balance was
$90,000. Assuming a 365-day year, what is the
average collection period?

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