Please explain the solution to this general accounting problem using the correct accounting principles. TechSolutions Inc. has an accounts receivable turnoverratio of 4.5 times. The net credit sales for the year are$810,000.What is the day's sales in receivables ratio for the year?

Step 1: Definition of Day's Sales in ReceivablesDay's Sales in Receivables, also known as Days Sales…

Answered: TechSolutions Inc. has an accounts…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 3P

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TechSolutions Inc. has an accounts receivable turnover ratio of 4.5 times. The net credit sales for the year are $810,000. What is the day's sales in receivables ratio for the year?