Valley Sports Supply had a beginning accounts receivable balance of $600,000 and an ending balance of $720,000. Net credit sales for the year were $6,480,000. What is the average collection period in days?

Valley Sports Supply had a beginning accounts receivable balance of $600,000 and an ending balance of $720,000. Net credit sales for the year were $6,480,000. What is the average collection period in 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 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...

See similar textbooks

Related questions

Q: General accounting

A: Step 1: Definition of Interest on InvestmentInterest on Investment refers to the earnings generated…

Q: Step by step answer

A: Common size percentage for the fixed assets is computed below: Common size percentage for the fixed…

Q: How much total sales are required to achieve a net income of $160,000?

A: To calculate the required total sales to achieve a net income of $160,000, we use the…

Q: I need help with this general accounting question using the proper accounting approach.

A: To calculate Wilson Manufacturing's total product cost for March, we need to include: Direct…

Q: Please provide the correct answer to this general accounting problem using valid calculations.

A: To calculate the Direct Labor Rate Variance, use the formula:(Actual Rate - Standard Rate) × Actual…

Q: Accounting solution please and right answer

A: 1. Understand the TransactionHarvest Financial invested (paid out) $259,000 to purchase the accounts…

Q: Please solve this question by using appropriate method.

A: Given:Current Ratio = 2.8Acid-Test Ratio = 1.2Working Capital = $420,000Current Assets include:…

Q: chose best answer accounting question

A: Step 1: Definition of Days' Sales in ReceivablesDays' sales in receivables is a measure of how long…

Q: I need help finding the accurate solution to this general accounting problem with valid methods.

A: Step 1: Definition of Net Income Net income is the amount of profit left after all expenses have…

Q: Please show me the correct way to solve this financial accounting problem with accurate methods.

A: Step 1: Definition of Stockholders' EquityStockholders' Equity is the residual interest in a…

Q: Explain the difference between the accrual basis and cash basis of accounting. What are the…

A: Explanation Of Accrual Basis AccountingAccrual basis accounting records revenues when they are…

Q: What is the gross profit margin? Given step by step explanation for general accounting question

A: Step 1: Understand the formula for Gross Profit MarginGross Profit Margin = (Gross Profit ÷ Sales) ×…

Q: Can you help me solve this general accounting question using valid accounting techniques?

A: To compute the cost of the TechCore Inc. IT security assessment using actual costing, we include…

Q: Can you help me solve this general accounting question using the correct accounting procedures?

A: Step 1: Definition of P/E RatioThe Price-to-Earnings (P/E) Ratio is a widely used financial metric…

Q: Please see an attachment for details financial accounting question do fast

A: To calculate Inventory Days on Hand: Step 1: Calculate Cost of Goods Sold (COGS) Given:Sales =…

Q: Calculate the annual depreciation charge at the end of each year for the first give years of the…

A: Concept of Depreciation:Depreciation is the systematic allocation of the cost of a tangible fixed…

Q: Yao Ming Traders has the following transaction data: beginning inventory $9,200, purchases $70,000,…

A: Step 1: Definitions Concept of Cost of Goods Sold (COGS):Cost of Goods Sold represents the direct…

Q: What was Rolex's cost of goods manufactured ?

A: Step 1: DefinitionsConcept of Cost of Goods Manufactured (COGM):COGM is the total cost of producing…

Q: Can you help me solve this general accounting problem using the correct accounting process?

A: Step 1: Definition of Key Ratios and FormulaCurrent Ratio is the ratio of current assets to current…

Q: SUBJECT: FINANCIAL ACCOUNTING 2

A: Explanation of Debt Ratio: The debt ratio is a financial metric that measures the extent to which a…

Q: Please show me the correct approach to solving this financial accounting question with proper…

A: To determine net income, we use the accounting equation:Assets = Liabilities + Owner's EquityWe can…

Q: Which basis applies to accounting for dividend-in-kind distributions? a) Recipient's valuation b)…

A: Explanation of Dividend-in-Kind: A dividend-in-kind is a non-cash distribution of assets from a…

Q: What is the number of units transferred to finished goods during the year?

A: Step 1: Definition of Weighted Average MethodThe Weighted Average Method is a process costing…

Q: can you please solve this accounting question

A: Step 1: Definition of Long-Term Debt:Long-term debt refers to financial obligations or loans that a…

Q: I need help with this financial accounting question using the proper financial approach.

A: Step 1: Define Debt-to-Equity RatioThe debt-to-equity ratio measures a company's financial leverage…

Q: Vito’s Veggie Rolls prepares 120 rolls every day and sells them at $19 per piece. For each roll, he…

A: Step 1: DefinitionConcept of Profit Calculation in Small Businesses:Profit is the amount of money a…

Q: Answer

A: Concept of Budgeted Production:Budgeted production refers to the estimated number of units a company…

Q: Jack Co. is working on Job 417,which requires $16,200 of direct materials, $7,400 of direct labor,…

A: Provided Data:Direct materials = $16,200Direct labor = $7,400Direct labor hours = 720 hoursMachine…

Q: Please provide the correct answer to this general accounting problem using valid calculations.

A: Step 1: Definition of Variable Overhead Efficiency VarianceThe Variable Overhead Efficiency Variance…

Q: Please provide the correct answer to this general accounting problem using valid calculations.

A: Step 1: Definition of Recognized Gain or Loss in Partnership Interest SaleRecognized gain or loss is…

Q: Ronan Mart recorded the following: cash sales $47,500, credit sales $69,000, sales return $5,200,…

A: Step 1: Definitions Concept of Gross Sales:Gross sales represent the total unadjusted revenue from…

Q: General Accounting

A: Step 1: Definition of Stockholders' EquityStockholders' Equity, also known as Shareholders' Equity…

Q: I am trying to find the accurate solution to this general accounting problem with the correct…

A: Step 1: Define Equivalent Units of Conversion CostsEquivalent units of conversion costs represent…

Q: I need help with this solution and accounting question

A: Step 1: Definition of Degree of Operating Leverage (DOL)Degree of Operating Leverage (DOL) measures…

Q: Chalamet Co. sold office furniture costing $15,600 with accumulated depreciation of $12,400 for…

A: Definition of Book Value of an Asset:The book value of an asset is the value of the asset recorded…

Q: I need help with this general accounting problem using proper accounting guidelines.

A: Concept of Net Fixed Assets:Net fixed assets refer to the value of a company's long-term tangible…

Q: Hi expert please given correct answer with accounting question

A: Step 1: Definition of Operating LeverageOperating leverage measures how sensitive a company's…

Q: what was the companys revenue for the year ?

A: Step 1: Definition of Owner's Equity and the Accounting EquationOwner's Equity, also known as…

Q: Financial Accounting

A: Step 1: Define Corrected Net ProfitCorrected net profit refers to the adjusted profit figure after…

Q: Opportunity cost is the best example of ______________ Sunk Cost Standard Cost Relevant Cost…

A: Analyzing Each Option in Detail:1. Sunk Cost ❌Definition: Costs that have already been incurred and…

Q: What is the net income reported by parker plumbing for the year? accounting question

A: Step 1: Net Income DefinitionNet income, also referred to as "net profit" or "bottom line," is one…

Q: Can you solve this general accounting problem with appropriate steps and explanations?

A: Step 1: Definition of Gearing RatioThe gearing ratio measures the proportion of a company's debt to…

Q: Financial Accounting

A: To find Oceanic Shipping's net income, we use the formula for Return on Equity (ROE): ROE = Net…

Q: I am looking for the correct answer to this general accounting question with appropriate…

A: Step 1: Define Gross ProfitGross Profit is the difference between net sales and the cost of goods…

Q: What is the estimated amount of inventory on hand?

A: Explanation of Beginning Inventory: Beginning inventory refers to the total value of merchandise a…

Q: ElectroCore manufactures circuit modules for solar power inverters. Each module has a standard cost…

A: What is Labor Rate Variance (LRV)? Labor Rate Variance measures how much of the total labor cost…

Q: How much profit is it earning per share?

A: To find the profits per share (also known as earnings per share or EPS), work with the given…

Q: Provide correct option

A: Gross sales: $20,000Sales discount: The payment terms are 1/10, so the customer takes a 1% discount…

Q: Can you help me solve this general accounting question using the correct accounting procedures?

A: Step 1: Definition of Budgeted Cost of Goods SoldThe budgeted cost of goods sold (COGS) represents…

Q: Please need answer the general accounting question

A: Step 1: Definition of Equivalent Units for Direct MaterialsIn a manufacturing process, the…

Question

100%

Can you solve this general accounting problem with appropriate steps and explanations?

Valley Sports Supply had a beginning accounts
receivable balance of $600,000 and an ending balance of
$720,000. Net credit sales for the year were $6,480,000.
What is the average collection period in days?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Fitbands estimated sales are: What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?
Montalcino Company had net sales of 54,000,000. Montalcino had the following balances: Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note: Round answers to two decimal places. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Medwig Corporation has a DSO of 17 days. The company averages 3,500 in sales each day (all customers take credit). What is the companys average accounts receivable?
Calculate the average collection period in days ?
Need
Camden Hardware’s credit sales for the year were $320,000. Accounts receivable at the beginning and end of the year were $50,000 and $70,000, respectively. Calculate the accounts receivable turnover ratio and the average collection period for the year.
Elite Services Inc. had total net credit sales of $900,000 for the year. The beginning accounts receivable balance was $70,000, and the ending balance was $90,000. Calculate the accounts receivable turnover ratio. • Determine the average collection period in days.
A company had an accounts receivable balance of $600,000 at the beginning of the year and $720,000 at the end of the year. Net credit sales during the year were $5,400,000. What was the average collection period of the receivables in terms of days?
what is the average collection period?
What was the average collection period?