Tech Solutions Inc. reports net credit sales for the year of $720,000. The company's accounts receivable balance at the beginning of the year was $45,000 and the balance at the end of the year was $65,000. Calculate the Average Number of Days' Sales in Accounts Receivables. Assume there are 365 days in a year, and round your answer to the nearest whole number.

Tech Solutions Inc. reports net credit sales for the year of $720,000. The company's accounts receivable balance at the beginning of the year was $45,000 and the balance at the end of the year was $65,000. Calculate the Average Number of Days' Sales in Accounts Receivables. Assume there are 365 days in a year, and round your answer to the nearest whole number.

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 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...

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Your company had net sales of $100,000 over the past year. One quarter of the sales were credit sales. During that time, average receivables were $5,000. The accounts receivable balance at the end of the year was $5,000. What was the average collection period? What is the average age of receivables (same answer!)? (Assume a 360-day year) O 18 days O 27 days O 36 days O 72 days O 60 days
Calculate the average collection period in days ?