The financial statements of Lawn Mowers Inc. report beginning accounts receivable of $100,000 and ending accounts receivable of $105,000. Net credit sales were $1,200,000 for the year. Calculate the accounts receivable turnover and average collection period in days. Use a 365 year.

The financial statements of Lawn Mowers Inc. report beginning accounts receivable of $100,000 and ending accounts receivable of $105,000. Net credit sales were $1,200,000 for the year. Calculate the accounts receivable turnover and average collection period in days. Use a 365 year.

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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Question

Financial accounting

The financial statements of Lawn Mowers Inc. report
beginning accounts receivable of $100,000 and ending
accounts receivable of $105,000. Net credit sales were
$1,200,000 for the year. Calculate the accounts receivable
turnover and average collection period in days. Use a 365
year.

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