A company had Sales and Cost of Sales last year of $600 million and $300 million respectively. All sales were on credit terms. If its customers paid their invoices on average at 16 days, what is the companys average Accounts Receivable balance? (Assume a 365-day year.)

a.

$26.3 million

b.

$13.1 million

c.

$9.4 million

d.

$18.7 million