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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Your company had net sales of $100,000 over the past year. One quarter of the sales were credit sales. During that time, average receivables were $5,000. The accounts receivable balance at the end of the year was $5,000. What was the average collection period? What is the average age of receivables (same answer!)? (Assume a 360-day year) O 18 days O 27 days O 36 days O 72 days O 60 days
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Baxley Brothers has a DSO of 20 days, and its annual sales are $10,585,000. What is its accounts receivable balance? Assume that it uses a 365-day year. Round your answer to the nearest dollar
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Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 21%. Complete the account activity table for Kathy. Month PreviousMonth'sBalance FinanceCharge(in $) Purchasesand CashAdvances Paymentsand Credits New BalanceEnd of Month(in $) March $720.00 $ $129.97 $65.00 $

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