How long on average does it take the firm to collect on its sales? Templar Inc. had sales of $95million this year. Its accountsreceivable balance averaged $3.8million. How long, on average,does it take the firm to collect onits sales?

Days Sales Outstanding = (Average Receivables/Net Sales)*365 Days Sales Outstanding = (3.8/95)*365…

Answered: Templar Inc. had sales of $95 million…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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Templar Inc. had sales of $95 million this year. Its accounts receivable balance averaged $3.8 million. How long, on average, does it take the firm to collect on its sales?