Speedy Electronics has sales of $3,500, costs of goods sold of $2,800, inventory of $400, and accounts receivable of $550. How many days, on average, does it take the firm to sell its inventory, assuming that all sales are on credit? a) 52.2 days b) 60.2 days c) 70.5 days d) 107.3 days e) 110.5 days

Speedy Electronics has sales of $3,500, costs of goods sold of $2,800, inventory of $400, and accounts receivable of $550. How many days, on average, does it take the firm to sell its inventory, assuming that all sales are on credit? a) 52.2 days b) 60.2 days c) 70.5 days d) 107.3 days e) 110.5 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...

See similar textbooks

Similar questions

Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales. What is the length of the firm’s cash conversion cycle? If annual sales are $4,380,000 and all sales are on credit, what is the firm’s investment in accounts receivable? How many times per year does Negus Enterprises turn over its inventory?
Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were 4,562,500 and accounts receivable averaged 437,500. Half of Grunewalds customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewalds nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.)
The Up-Towner has sales of $913,400, costs of goods sold of $579,300, inventory of $123,900, and accounts receivable of $78,900. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? A) 74.19 days B) 84.69 days C) 78.07 days D) 96.46 days E) 71.01 days
Sales are on credit?
The Up-Towner has sales of $913,400, costs of goods sold of $650,300, inventory of $136,500, and accounts receivable of $78,900. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? A) 74.19 days B) 84.69 days C) 78.07 days D) 96.46 days E) 76.61 days. Correct answer☑
Provide answer
Blackwell Co. has credit sales of $317,428, costs of goods sold of $151,217, and average accounts receivable of $28,744. How long on average does it take the firm's credit customers to pay for their purchases? Multiple Choice 33.05 days 27.99 days 31.37 days 29.95 days 38.23 days
I want answer
ABCD Corporation has credit sales of $10,640,000 and receivables of $1,520,000. a. What is the receivables turnover?b. What is the average collection period (days sales outstanding)?c. If the company offers credit terms of 30 days, are its receivables past due?
The accounts receivable turnover ratio of a company is 2; if its annual credit sales is $ 719550, what is the average value of outstanding credit (or value of accounts receivable)? If the company operates 355 a year, what is the average number of days it takes to get a credit sale paid? Average outstanding credit = $| (Round to TWO places of decimal) Average number of days to get payment on a credit sale =| (Round to the nearest integer)
What is the average accounts payable balance? ?
Can you please give me correct answer the general accounting question?