Nova Corp. has an average collection period of 30 days. Its average daily investment in receivables is $65,000. a. What is the receivables turnover? b. What are the annual credit sales?

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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Nova Corp. has an average collection period of 30 days.
Its average daily investment in receivables is $65,000.
a. What is the receivables turnover?
b. What are the annual credit sales?
Transcribed Image Text:Nova Corp. has an average collection period of 30 days. Its average daily investment in receivables is $65,000. a. What is the receivables turnover? b. What are the annual credit sales?
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