Sunrise Electronics has accounts receivable of $3,500, inventory of $2,300, sales of $120,000, and cost of goods sold of $72,000. How many days does it take the firm to sell its inventory and collect the payment on the sale, assuming that all sales are on credit?

Sunrise Electronics has accounts receivable of $3,500, inventory of $2,300, sales of $120,000, and cost of goods sold of $72,000. How many days does it take the firm to sell its inventory and collect the payment on the sale, assuming that all sales are on credit?

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 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

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Sunrise Electronics has accounts receivable of $3,500, inventory of $2,300, sales of
$120,000, and cost of goods sold of $72,000. How many days does it take the firm to
sell its inventory and collect the payment on the sale, assuming that all sales are on
credit?

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