Based on the following data for the current year, what is the number of days' sales in receivables (rounded to one decimal place)? Assume 365 days a year.Sales on account during year$528,172Cost of merchandise sold during year163,114Accounts receivable, beginning of year46,257Accounts receivable, end of year46,750Merchandise inventory, beginning of year87,979Merchandise inventory, end of year112,127

Number of days' sales in receivable = 365/Accounts receivable turnover Accounts receivable turnover = Sales on account/Average accounts receivable Average accounts receivable = ($46,257 + $46,750)/2 Average accounts receivable = $93,007/2 Average accounts receivable = $46,503.5 Accounts receivable turnover = Sales on account/Average accounts receivable Accounts receivable turnover = $528,172/$46,503.5 Accounts receivable turnover = 11.36 Number of days' sales in receivable = 365/Accounts receivable turnover Number of days' sales in receivable = 365/11.36 Number of days' sales in receivable = 32.1 days

Answered: Based on the following data for the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Based on the following data for the current year, what is the number of days' sales in receivables (rounded to one decimal place)? Assume 365 days a year.

Sales on account during year

$528,172

Cost of merchandise sold during year	163,114
Accounts receivable, beginning of year	46,257

Accounts receivable, end of year	46,750
Merchandise inventory, beginning of year	87,979
Merchandise inventory, end of year	112,127

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