Sunshine Catering has annual sales of $425,000. Their cost of goods sold is 52% of sales, and the profit margin is 6%. If the average accounts receivable balance is $56,000, how long does it take Sunshine Catering to collect payment for its services?
Sunshine Catering has annual sales of $425,000. Their cost of goods sold is 52% of sales, and the profit margin is 6%. If the average accounts receivable balance is $56,000, how long does it take Sunshine Catering to collect payment for its services?
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
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Transcribed Image Text:Sunshine Catering has annual sales of $425,000. Their
cost of goods sold is 52% of sales, and the profit margin
is 6%. If the average accounts receivable balance is
$56,000, how long does it take Sunshine Catering to
collect payment
for
its
services?
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