Your manufacturing business has annual net sales of $1,250,000 and average accounts receivable of $175,000. Which of the following statements is correct? (Round all calculations to one decimal place.) (a) The receivables turnover ratio is 0.1 and the days-to-collect is 3,650. (b) The receivables turnover ratio is 7.1 and the days-to-collect is 51.4. (c) The receivables turnover ratio is 0.1 and the days-to-collect is 51.4. (d) The receivables turnover ratio is 7.1 and the days-to-collect is 3,650.

Your manufacturing business has annual net sales of $1,250,000 and average accounts receivable of $175,000. Which of the following statements is correct? (Round all calculations to one decimal place.) (a) The receivables turnover ratio is 0.1 and the days-to-collect is 3,650. (b) The receivables turnover ratio is 7.1 and the days-to-collect is 51.4. (c) The receivables turnover ratio is 0.1 and the days-to-collect is 51.4. (d) The receivables turnover ratio is 7.1 and the days-to-collect is 3,650.

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 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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