Premier Corp. has sales of $870,539, and cost of goods sold equal to 74 percent of sales.

Question:

Premier Corp. has sales of $870,539, and cost of goods sold equal to 74 percent of sales. Assume all sales are credit sales. If the firm’s accounts receivable total $138,135 and its operating cycle is 71.1 days, how much inventory does the firm have?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...