NovaTech Solutions reported total net credit sales of $1,000,000 for the year. The beginning accounts receivable balance was $90,000, and the ending balance was $110,000. • Calculate the accounts receivable turnover ratio. • What is the average collection period in days?

NovaTech Solutions reported total net credit sales of $1,000,000 for the year. The beginning accounts receivable balance was $90,000, and the ending balance was $110,000. • Calculate the accounts receivable turnover ratio. • What is the average collection period in days?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...

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NovaTech Solutions reported total net credit sales of $1,000,000 for the year. The
beginning accounts receivable balance was $90,000, and the ending balance was
$110,000.
• Calculate the accounts receivable turnover ratio.
• What is the average collection period in days?

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What is the number of days sales in receivable?
What was the average collection period of the receivable in terms of days?
Solve this following requirements on these general accounting question
Calculate the average collection period in days ?