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At year-end, Sally has cash of $8,000, current accounts receivable of $40,000, merchandise inventory of $43,200, and prepaid expenses totaling $4,600. Liabilities of $32.000 must be paid next year. Assume accounts receivable had a beginning balance of $30,000 and net credit sales for the current year totaled $840,000. How many days did it take Sally to collect its average level of receivables? a. 15 b. 13 c. 17 d. 30

At year-end, Sally has cash of $8,000, current accounts receivable of $40,000, merchandise inventory of $43,200, and prepaid expenses totaling $4,600. Liabilities of $32.000 must be paid next year. Assume accounts receivable had a beginning balance of $30,000 and net credit sales for the current year totaled $840,000. How many days did it take Sally to collect its average level of receivables? a. 15 b. 13 c. 17 d. 30

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At year-end, Sally has cash of $8,000, current accounts receivable of $40,000, merchandise inventory of $43,200, and prepaid expenses totaling $4,600. Liabilities of $32.000 must be paid next year. Assume accounts receivable had a beginning balance of $30,000 and net credit sales for the current year totaled $840,000. How many days did it take Sally to collect its average level of receivables? a. 15 b. 13 c. 17 d. 30
Transcribed Image Text:At year-end, Sally has cash of $8,000, current accounts receivable of $40,000, merchandise inventory of $43,200, and prepaid expenses totaling $4,600. Liabilities of $32.000 must be paid next year. Assume accounts receivable had a beginning balance of $30,000 and net credit sales for the current year totaled $840,000. How many days did it take Sally to collect its average level of receivables? a. 15 b. 13 c. 17 d. 30
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