Camden Hardware's credit sales for the year were $445,500. Accounts receivable at the beginning and end of the year were $45,000 and $65,000, respectively. a. Calculate the accounts receivable turnover ratio. b. Calculate the average collection period for the year. Note: Round "Receivables turnover ratlo" answer to 2 decimal places and "Average collection period" answer to nearest whole number. Use 365 days a year. a. Receivables turnover ratio b. Average collection period times days
Camden Hardware's credit sales for the year were $445,500. Accounts receivable at the beginning and end of the year were $45,000 and $65,000, respectively. a. Calculate the accounts receivable turnover ratio. b. Calculate the average collection period for the year. Note: Round "Receivables turnover ratlo" answer to 2 decimal places and "Average collection period" answer to nearest whole number. Use 365 days a year. a. Receivables turnover ratio b. Average collection period times days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Camden Hardware's credit sales for the year were $445,500. Accounts receivable at the beginning and end of the year were $45,000
and $65,000, respectively.
a. Calculate the accounts receivable turnover ratio.
b. Calculate the average collection period for the year.
Note: Round "Receivables turnover ratlo" answer to 2 decimal places and "Average collection period" answer to nearest
whole number. Use 365 days a year.
a. Receivables turnover ratio
b. Average collection period
times
days
48
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