Ridgewell Industries has $45,800 in accounts receivable and $180,000 in total assets. The company's total asset turnover rate is 1.4, and its profit margin is 4.5%. What are the days' sales in receivables? a. 48.36 days b. 66.31 days c. 58.74 days d. 39.81 days

Ridgewell Industries has $45,800 in accounts receivable and $180,000 in total assets. The company's total asset turnover rate is 1.4, and its profit margin is 4.5%. What are the days' sales in receivables? a. 48.36 days b. 66.31 days c. 58.74 days d. 39.81 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 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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Question

Can you explain the process for solving this financial accounting problem using valid standards?

Ridgewell Industries has $45,800 in accounts receivable and
$180,000 in total assets. The company's total asset turnover
rate is 1.4, and its profit margin is 4.5%.
What are the days' sales in receivables?
a. 48.36 days
b. 66.31 days
c. 58.74 days
d. 39.81 days

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