Summit Industries had net credit sales during the year of $2,400,000 and a cost of goods sold of $1,680,000. The balance in accounts receivable at the beginning of the year was $320,000, and at the end of the year, it was $280,000. 1. Compute the accounts receivable turnover ratio. 2. Determine the average collection period (in days).

Summit Industries had net credit sales during the year of $2,400,000 and a cost of goods sold of $1,680,000. The balance in accounts receivable at the beginning of the year was $320,000, and at the end of the year, it was $280,000. 1. Compute the accounts receivable turnover ratio. 2. Determine the average collection period (in 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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