Hendrix Corporation had annual sales of $75 million, which occurred evenly throughout the 365 days of the year. Its accounts receivable balance averaged $3 million. How long, on average, does it take the firm to collect on its sales? a) 14.6 days b) 18.2 days c) 16.5 days d) 20.4 days
Hendrix Corporation had annual sales of $75 million, which occurred evenly throughout the 365 days of the year. Its accounts receivable balance averaged $3 million. How long, on average, does it take the firm to collect on its sales? a) 14.6 days b) 18.2 days c) 16.5 days d) 20.4 days
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 3P
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Transcribed Image Text:Hendrix Corporation had annual sales of $75 million,
which occurred evenly throughout the 365 days of the
year. Its accounts receivable balance averaged $3
million.
How long, on average, does it take the firm to collect
on its sales?
a) 14.6 days
b) 18.2 days
c) 16.5 days
d) 20.4 days
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