Assume a company whose sales are all on account provided the following information: Gross margin percentage Cost of goods sold 40% $ 415,000 $ 20,000 Accounts receivable balance, beginning of the year Accounts receivable balance, end of the year Net income $ 30,000 $ 10,000 The average collection period is closest to: (Round accounts receivable turnover to the nearest whole number.) Multiple Choice O 15.54 days. 17.29 days. O 10.54 days. O 13.04 days.
Assume a company whose sales are all on account provided the following information: Gross margin percentage Cost of goods sold 40% $ 415,000 $ 20,000 Accounts receivable balance, beginning of the year Accounts receivable balance, end of the year Net income $ 30,000 $ 10,000 The average collection period is closest to: (Round accounts receivable turnover to the nearest whole number.) Multiple Choice O 15.54 days. 17.29 days. O 10.54 days. O 13.04 days.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:Assume a company whose sales are all on account provided the following information:
Gross margin percentage
Cost of goods sold
$ 415,000
$ 20,000
$ 30,000
$ 10,000
The average collection period is closest to: (Round accounts receivable turnover to the nearest whole number.)
Accounts receivable balance, beginning of the year
Accounts receivable balance, end of the year
Net income
Multiple Choice
15.54 days.
17.29 days.
10.54 days.
40%
13.04 days.
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