Need answer the general accounting question ABC Electronics had net sales of $150,000 over the past year. 60% ofthe sales were credit sales. During that time, average receivables were$7,500.What was the average collection period? (Assume a 360-day year.)

Step 1: Define Average Collection PeriodThe Average Collection Period measures the average number of…

Answered: ABC Electronics had net sales of…

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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What was the average collection period?
A company had net sales of $120,000 over the past year. 60% of the sales were credit sales. During that time, average receivables were $6,000. What was the average collection period? (Assume a 360-day year) a) 20 days b) 30 days c) 40 days d) 60 days e) 45 days MCQ
A company had net sales of $120,000 over the past year. 60% of the sales were credit sales. During that time, average receivables were $6,000. What was the average collection period? (Assume a 360-day year) a) 20 days b) 30 days c) 40 days d) 60 days e) 45 days
What was the average collection period?
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Assume the credit terms offered to your firm by your suppliers are 4/20, net 50. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 50. (Hint: Use a 365-day year.) The cost of trade credit is%. (Rounded to two decimal places.) ...
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ABC Electronics had net sales of $150,000 over the past year. 60% of the sales were credit sales. During that time, average receivables were $7,500. What was the average collection period? (Assume a 360-day year.)