accounts receivable turno ratio of a company is 2, annual credit sales IS $ nat is the average putstanding credit (or value of accounts receivable)? If the company operates 355 a year, what is the average number of days it takes rodit calo

accounts receivable turno ratio of a company is 2, annual credit sales IS $ nat is the average putstanding credit (or value of accounts receivable)? If the company operates 355 a year, what is the average number of days it takes rodit calo

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 12MC: South Rims has an accounts receivable balance at the end of 2018 of $357,470. The net credit sales...

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

The accounts receivable turnover ratio of a company is 2; if its annual credit sales is $ 719550, what is the average value of
outstanding credit (or value of accounts receivable)? If the company operates 355 a year, what is the average number of days it takes
to get a credit sale paid?
Average outstanding credit = $|
(Round to TWO places of decimal)
Average number of days to get payment on a credit sale =|
(Round to the nearest integer)

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