I want to correct answer 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: Define Average Collection PeriodAs its name suggests, the average collection period denotes…

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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At year-end, Sample has cash of $8,000, current accounts receivable of $40,000, merchandise inventory of $43,200, and prepaid expenses totaling $5,100. 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 Sample to collect its average level of receivables? (Assume 365 days/year. Round any interim calculations to two decimal places. Round the number of days to the nearest whole number) A. 30 B. 13 C.17 D.15
At year-end, Snow has cash of $16,000, current accounts receivable of $90,000, merchandise inventory of $45,000, and prepaid expenses totaling $4,200. Liabilities of $50,000 must be paid next year. Assume accounts receivable had a beginning balance of $30,000 and net credit sales for the current year totaled $360,000. How many days did it take Snow to collect its average level of receivables? (Assume 365 days/year. Round any interim calculations to two decimal places. Round the number of days to the nearest whole number.) OA. 30 OB. 91 O C. 122 OD. 61
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Peterboro Supply has a current accounts receivable balance of $391,648. Credit sales for the year just ended were $5,338,411. How long did it take on average for credit customers to pay off their accounts during the past year? Assume a 365-day year. Can you provide the formula?
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