Answered: TICA Corporation had sales of $72…

TICA Corporation had sales of $72 million this year. Its accounts receivable balance averaged $2.4 million. How long, on average, does it take the firm to collect on its sales?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

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Question

TICA Corporation had sales of $72
million this year. Its accounts
receivable balance averaged $2.4
million. How long, on average, does it
take the firm to collect on its sales?

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