Your company had net sales of $100,000 over the past year. Half the sales were credit sales. During that time, average receivables were $5,000. What was the average collection period? (Assume a 360-day year) a. 18 days b. 27 days c. 36 days d. 72 days e. 60 days

Your company had net sales of $100,000 over the past year. Half the sales were credit sales. During that time, average receivables were $5,000. What was the average collection period? (Assume a 360-day year) a. 18 days b. 27 days c. 36 days d. 72 days e. 60 days

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1P: Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level...

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Question

Provide Answer of this one please need Correct Answer general accounting

Your company had net sales of $100,000 over the past year. Half the sales
were credit sales. During that time, average receivables were $5,000.
What was the average collection period? (Assume a 360-day year)
a. 18 days
b. 27 days
c. 36 days
d. 72 days
e. 60 days

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