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At year-end, Blue Wave Corp. has cash of $35,000, current accounts receivable of $75,000, merchandise inventory of $60,000, and prepaid expenses totaling $8,200. Liabilities of $45,000 must be paid next year. Assume accounts receivable had a beginning balance of $32,000, and net credit sales for the current year totaled $2,400,000. How many days did it take Blue Wave Corp. to collect its average level of receivables? (Assume 365 days/year.)

At year-end, Blue Wave Corp. has cash of $35,000, current accounts receivable of $75,000, merchandise inventory of $60,000, and prepaid expenses totaling $8,200. Liabilities of $45,000 must be paid next year. Assume accounts receivable had a beginning balance of $32,000, and net credit sales for the current year totaled $2,400,000. How many days did it take Blue Wave Corp. to collect its average level of receivables? (Assume 365 days/year.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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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At year-end, Blue Wave Corp. has cash of $35,000, current accounts receivable of $75,000, merchandise inventory of $60,000, and prepaid expenses totaling $8,200. Liabilities of $45,000 must be paid next year. Assume accounts receivable had a beginning balance of $32,000, and net credit sales for the current year totaled $2,400,000. How many days did it take Blue Wave Corp. to collect its average level of receivables? (Assume 365 days/year.)
Transcribed Image Text:At year-end, Blue Wave Corp. has cash of $35,000, current accounts receivable of $75,000, merchandise inventory of $60,000, and prepaid expenses totaling $8,200. Liabilities of $45,000 must be paid next year. Assume accounts receivable had a beginning balance of $32,000, and net credit sales for the current year totaled $2,400,000. How many days did it take Blue Wave Corp. to collect its average level of receivables? (Assume 365 days/year.)
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