Need help with this question solution general accounting At year-end, Simple has cash of $12,000, current accountsreceivable of $60,000, merchandise inventory of $37,200,and prepaid expenses totaling $5,200. Liabilities of $24,000must be paid next year. Assume accounts receivable had abeginning balance of $20,000 and net credit sales for thecurrent year totaled $2,400,000.How many days did it take Simple to collect its average levelof receivables? (Assume 365 days/year.)

Step 1:Days collection ratio = 365 days /Accounts receivable turnover ratio Accounts receivable…

Answered: At year-end, Simple has cash of…

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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