Sellograph Corporation reports sales of $10 million for Year 2, with a gross profit margin of 40%. 20% of Sellograph's sales are on credit. Year 1 Year 2 Account receivable $150,000 $170,000 Inventory $900,000 $1,000,000 Account payable $1,100,000 $1,200,000 Accounts receivable days outstanding at the end of Year 2 is closest to: A. 30.6 days. B. 26.0 days. C. 27.0 days.

Sellograph Corporation reports sales of $10 million for Year 2, with a gross profit margin of 40%. 20% of Sellograph's sales are on credit. Year 1 Year 2 Account receivable $150,000 $170,000 Inventory $900,000 $1,000,000 Account payable $1,100,000 $1,200,000 Accounts receivable days outstanding at the end of Year 2 is closest to: A. 30.6 days. B. 26.0 days. C. 27.0 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

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1P: Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level...

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