Oral Roberts Dental Supplies has annual sales of $5,760,000. Ninety percent are on credit. The firm has $820,800 in accounts receivable. Compute the value of the average collection period. (Do not round intermediate calculations. Use a 360-day year.) Average collection period days

Oral Roberts Dental Supplies has annual sales of $5,760,000. Ninety percent are on credit. The firm has $820,800 in accounts receivable. Compute the value of the average collection period. (Do not round intermediate calculations. Use a 360-day year.) Average collection period 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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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

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Oral Roberts Dental Supplies has annual sales of $5,760,000. Ninety percent are on credit. The firm has $820,800 in accounts
receivable.
Compute the value of the average collection period. (Do not round intermediate calculations. Use a 360-day year.)
Average collection period
days

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