Chapter 15, Problem 27BEB

Last year, Toby’s Hats had net sales of $45,000,000 and cost of goods sold of $29,000,000. Toby’s had the following balances:

Refer to the information for Toby’s on the previous page.

Required:

Note: Round answers to one decimal place.

1. 1. Calculate the average accounts receivable.
2. 2. Calculate the accounts receivable turnover ratio.
3. 3. Calculate the accounts receivable turnover in days.