At year-end, Green Tech Inc. has cash of $20,000, current accounts receivable of $50,000, merchandise inventory of $45,000, and prepaid expenses totaling $6,500. Liabilities of $30,000 must be paid next year. Assume accounts receivable had a beginning balance of $18,000, and net credit sales for the current year totaled $1,800,000. How many days did it take Green Tech Inc. to collect its average level of receivables? (Assume 365 days/year.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 3P
icon
Related questions
Question
At year-end, Green Tech Inc. has cash of $20,000, current
accounts receivable of $50,000, merchandise inventory of
$45,000, and prepaid expenses totaling $6,500. Liabilities of
$30,000 must be paid next year. Assume accounts receivable
had a beginning balance of $18,000, and net credit sales for
the current year totaled $1,800,000.
How many days did it take Green Tech Inc. to collect its average
level of receivables? (Assume 365 days/year.)
Transcribed Image Text:At year-end, Green Tech Inc. has cash of $20,000, current accounts receivable of $50,000, merchandise inventory of $45,000, and prepaid expenses totaling $6,500. Liabilities of $30,000 must be paid next year. Assume accounts receivable had a beginning balance of $18,000, and net credit sales for the current year totaled $1,800,000. How many days did it take Green Tech Inc. to collect its average level of receivables? (Assume 365 days/year.)
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning