In the table below the information for four companies is provided. Company Accounts Receivable turnover Average collection period Concord 13.95 26.45 Lewis 12.75 25.45 Danforth 11.80 35.25 Tamarisk 13.15 26.90 Industry Average 12.50 25.75 If Tamarisk's net credit sales are $716,675, what are its average net accounts receivable? a. $41,762 b. $54,500 c. $134,120 d. $87,575

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
Problem 4BE
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In the table below the information for four companies is provided.
Company
Accounts Receivable turnover Average collection period
Concord
13.95
26.45
Lewis
12.75
25.45
Danforth
11.80
35.25
Tamarisk
13.15
26.90
Industry Average 12.50
25.75
If Tamarisk's net credit sales are $716,675, what are its average net accounts
receivable?
a. $41,762
b. $54,500
c. $134,120
d. $87,575
Transcribed Image Text:In the table below the information for four companies is provided. Company Accounts Receivable turnover Average collection period Concord 13.95 26.45 Lewis 12.75 25.45 Danforth 11.80 35.25 Tamarisk 13.15 26.90 Industry Average 12.50 25.75 If Tamarisk's net credit sales are $716,675, what are its average net accounts receivable? a. $41,762 b. $54,500 c. $134,120 d. $87,575
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