XYZ's receivables turnover is 4x. The accounts receivable at year-end are $600,000. The average collection period is 90 days. Required: What was the sales figure for the year assuming all sales are on credit?

XYZ's receivables turnover is 4x. The accounts receivable at year-end are $600,000. The average collection period is 90 days. Required: What was the sales figure for the year assuming all sales are on credit?

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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XYZ's receivables turnover is 4x. The accounts receivable
at year-end are $600,000. The average collection period is
90 days.
Required:
What was the sales figure for the year assuming all sales
are on credit?

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