Jenny's has annual sales of $367,200 and cost of goods sold of $198,600. The average accounts receivable balance is $16.400. How many days on average does it take the firm to collect its accounts receivable? a) 16.08 days. b) 16.30 days. c) 17.27 days. d) 17.50 days. e) 18.33 days.

Jenny's has annual sales of $367,200 and cost of goods sold of $198,600. The average accounts receivable balance is $16.400. How many days on average does it take the firm to collect its accounts receivable? a) 16.08 days. b) 16.30 days. c) 17.27 days. d) 17.50 days. e) 18.33 days.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 2P: Medwig Corporation has a DSO of 17 days. The company averages 3,500 in sales each day (all customers...

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How many days on average does it take the firm to collect it's accounts receivable on these general accounting question?

Jenny's has annual sales of $367,200 and cost of
goods sold of $198,600. The average accounts
receivable balance is $16.400. How many days on
average does it take the firm to collect its accounts
receivable?
a) 16.08 days.
b) 16.30 days.
c) 17.27 days.
d) 17.50 days.
e) 18.33 days.

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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