Assume the financial statements of Magenta Winery Corporation reports net sales of $8,856,005 for its year ended December 31^st 2020. Accounts receivable are $512,960 at December 31^st 2020 and $443,194 at December 31^st 2019.

Req'd: Calculate the company's accounts receivable turnover ratio for fiscal year-end December 31^st 2020 and the average collection period for accounts receivable in days (also known as the "days to collect accounts receivable" or "days sales outstanding").

PRESENT VALUE TABLES

For Use on Problem 1

Table 1

Present Value of 1

Periods2%3%6%8%9%

10.980390.970870.943400.925930.91743

20.961170.942600.890000.857340.84168

30.942320.915140.839620.793830.77218

40.923850.888490.792090.735030.70843

50.905730.862610.747260.680580.64993

60.887970.837480.704960.630170.59627

Table 2

Present Value of Ordinary Annuity of 1

Periodic Rents2%3%6%8%9%

10.980390.970870.943400.925930.91743

21.941561.913471.833391.783261.75911

32.883882.828612.673012.577102.53130

43.807733.717103.465113.312133.23972

54.713464.579714.212363.992713.88965

65.601435.417194.917324.622884.48592