Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company has an accounts receivable turnover of 33.5 days, an average inventory of $120,000, and an average accounts payable balance of $52,000. What is

A company has an accounts receivable turnover of 33.5 days, an average inventory of $120,000, and an average accounts payable balance of $52,000. What is the company's accounts receivable collection period? In your calculations, assume there are 360 days in a year.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

The accounts receivable turnover is defined as the number of times a company collects its average accounts receivable balance in a year We can use this formula to calculate the accounts receivable col... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and managerial accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

1st edition

111800423X, 9781118233443, 1118016114, 9781118004234, 1118233441, 978-1118016114

More Books

Students also viewed these Accounting questions

Question

Briefly describe computer- assisted approaches to production.

Answered: 1 week ago

Question

Why is management of technology important?

Answered: 1 week ago