The following data is from Horizon Manufacturing's balance sheet: Year 2 Year 1 Current assets: Cash $180 Accounts receivable $340 Inventory $220 Prepaid expenses $25 Total current assets $765 Total current liabilities $395 Sales on account in Year 2 amounted to $1,580 and the cost of goods sold was $950. The average collection period for Year 2 is closest to: A. 72.4 days B. 78.5 days C. 81.9 days D. 85.3 days

The following data is from Horizon Manufacturing's balance sheet: Year 2 Year 1 Current assets: Cash $180 Accounts receivable $340 Inventory $220 Prepaid expenses $25 Total current assets $765 Total current liabilities $395 Sales on account in Year 2 amounted to $1,580 and the cost of goods sold was $950. The average collection period for Year 2 is closest to: A. 72.4 days B. 78.5 days C. 81.9 days D. 85.3 days

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 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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