At year-end, Simple has cash of $12,000, current accounts receivable of $60,000, merchandise inventory of $37,200, and prepaid expenses totaling $5,200. Liabilities of $24,000 must be paid next year. Assume accounts receivable had a beginning. balance of $20,000 and net credit sales for the current year totaled $2,400,000. How many days did it take Simple to collect its. average level of receivables? (Assume 365. days/year.)

At year-end, Simple has cash of $12,000, current accounts receivable of $60,000, merchandise inventory of $37,200, and prepaid expenses totaling $5,200. Liabilities of $24,000 must be paid next year. Assume accounts receivable had a beginning. balance of $20,000 and net credit sales for the current year totaled $2,400,000. How many days did it take Simple to collect its. average level of receivables? (Assume 365. days/year.)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...

See similar textbooks

Similar questions

Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
It's average leval of receivables?
At year-end, Sally, Inc. has cash of $14,000, current accounts receivable of $70,000, merchandise inventory of $42,600, and prepaid expenses totaling $5,200. Liabilities of $20,000 must be paid next year. Assume accounts receivable had a beginning balance of $10,000 and net credit sales for the current year totaled $560,000. How many days did it take Sally 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.) O O A. 26 B. 46 C. 52 D. 7
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
Average leval of receivables?
given answer
At year-end, StickStick has cash of $ 22 comma 000$22,000, current accounts receivable of $ 80 comma 000$80,000, merchandise inventory of $ 24 comma 000$24,000, and prepaid expenses totaling $ 5 comma 900$5,900. Liabilities of $ 64 comma 000$64,000 must be paid next year. Assume accounts receivable had a beginning balance of $ 40 comma 000$40,000 and net credit sales for the current year totaled $ 480 comma 000$480,000. How many days did it take StickStick to collect its average level of receivables?
I want to correct answer accounting
A company's accounts receivable shows $180,000 at year-end. If their average collection period is 45 days (using 360-day year), calculate their annual credit sales.
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
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?
Please need your help