Use the following selected financial information for Cooler Company to answer the question: Net sales 2,870 Cost of goods sold 1,985 Gross profit 885 Operating expenses 620 Operating profit 265 Interest expense 40 Earnings before taxes 225 Income tax expense 80 Net profit 145 Accounts receivable 70 Inventory 150 Total current assets 260 Total assets 860 Accounts payable 85 Total current liabilities 130 Long-term debt 240 Total liabilities 370 Total stockholders' equity 490 Total liabilities and equity 860 Calculate the average collection period. Show your work.
Use the following selected financial information for Cooler Company to answer the question:
Net sales 2,870
Cost of goods sold 1,985
Gross profit 885
Operating expenses 620
Operating profit 265
Interest expense 40
Earnings before taxes 225
Income tax expense 80
Net profit 145
Accounts receivable 70
Inventory 150
Total current assets 260
Total assets 860
Accounts payable 85
Total current liabilities 130
Long-term debt 240
Total liabilities 370
Total
Total liabilities and equity 860
Calculate the average collection period.
Show your work.
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