Given an account receivable balance of $400,000 and annual sales of $3,200,000, the average collection period (or days sales outstanding) is: a. 90.0 days b. 28.25 days c. 36.50 days d. 45.63 days

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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Given an account receivable balance of $400,000 and annual
sales of $3,200,000, the average collection period (or days
sales outstanding) is:
a. 90.0 days
b. 28.25 days
c. 36.50 days
d. 45.63 days
Transcribed Image Text:Given an account receivable balance of $400,000 and annual sales of $3,200,000, the average collection period (or days sales outstanding) is: a. 90.0 days b. 28.25 days c. 36.50 days d. 45.63 days
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