I want to this question answer general accounting River Valley Technologies has an average collection period of 45 days. Its averagedaily investment in receivables is $72,500.a. Calculate the receivables turnover. (Use 365 days a year. Do not roundintermediate calculations and round your final answer to 4 decimal places.)b. Determine the annual credit sales. (Use 365 days a year. Do not round intermediatecalculations and round your final answer to 2 decimal places.)

Step 1: Define Receivables Turnover and Annual Credit SalesReceivables Turnover measures how many…

Answered: River Valley Technologies has an…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 33P

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PLEASE MAKE IT IN EXCEL AND SHOW THE FORMULAS (Take screenshots) La Resolana, S.A., has credit sales of $180,000 per year, with net payment terms of 30 days, which is also the average collection period. La Resolana does not currently offer any cash discounts, so customers take the 30 days to pay. What is the average accounts receivable balance? What is the accounts receivable turnover?
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