Your company has net sales of $468,300 and average net receivables of $111,500 for the year. Which of the following statements is correct? (Round all calculations to one decimal place.) (a) The receivables turnover ratio is 4.2 and the days-to-collect is 0.01. (b) The receivables turnover ratio is 0.2 and the days-to-collect is 1,520. (c) The receivables turnover ratio is 4.2 and the days-to-collect is 86.9. (d) The receivables turnover ratio is 0.2 and the days-to-collect is 87.6.

Your company has net sales of $468,300 and average net receivables of $111,500 for the year. Which of the following statements is correct? (Round all calculations to one decimal place.) (a) The receivables turnover ratio is 4.2 and the days-to-collect is 0.01. (b) The receivables turnover ratio is 0.2 and the days-to-collect is 1,520. (c) The receivables turnover ratio is 4.2 and the days-to-collect is 86.9. (d) The receivables turnover ratio is 0.2 and the days-to-collect is 87.6.

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 43E: Montalcino Company had net sales of 54,000,000. Montalcino had the following balances: Required:...

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Your company has net sales of $468,300 and average net receivables of $111,500 for the year. Which of the following statements is correct? (Round all calculations to one decimal place.) (a) The receivables turnover ratio is 4.2 and the days-to-collect is 0.01. (b) The receivables turnover ratio is 0.2 and the days-to-collect is 1,520. (c) The receivables turnover ratio is 4.2 and the days-to-collect is 86.9. (d) The receivables turnover ratio is 0.2 and the days-to-collect is 87.6.
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