Assume a company whose sales are all on account provided the following information: Gross margin percentage Cost of goods sold Accounts receivable balance, beginning of the year Accounts receivable balance, end of the year Net income 40% $225,000 $ 20,000 $ 30,000 $ 10,000 The average collection period is closest to: (Round accounts receivable turnover to the nearest whole number.)
Assume a company whose sales are all on account provided the following information: Gross margin percentage Cost of goods sold Accounts receivable balance, beginning of the year Accounts receivable balance, end of the year Net income 40% $225,000 $ 20,000 $ 30,000 $ 10,000 The average collection period is closest to: (Round accounts receivable turnover to the nearest whole number.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Assume a company whose sales are all on account provided the following information:
Gross margin percentage
Cost of goods sold
Accounts receivable balance, beginning of the year
Accounts receivable balance, end of the year
Net income
Multiple Choice
The average collection period is closest to: (Round accounts receivable turnover to the nearest whole number.)
26.83 days
28.58 days
21.83 days
40%
24.33 days.
$225,000
$ 20,000
$ 30,000
$ 10,000
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