Question
Average collection cycle. Use the following account information to find the average collection cycle for Rian Company. 2013 and 2014 Selected Balance Sheet Accounts of
Average collection cycle.
Use the following account information to find the average collection cycle for Rian Company.
| 2013 and 2014 Selected Balance Sheet Accounts of Rian Company |
| |||
| 12/31/14 | 12/31/13 | Change | ||
| Accounts receivable | $45,370 | $55,057 | $9,687 | |
| Inventory | $68,717 | $73,604 | $4,887 | |
| Accounts payable | $33,493 | $31,275 | $2,218 | |
| 2014 Selected Income Statement Items for Rian Company |
| |
| Cash sales | $539,000 | |
| Credit sales | $650,000 | |
| Total sales | $1,189,000 | |
| Cost of goods sold | $628,785 | |
What is the average collection cycle for Rian Company?
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
1119563097, 9781119563099
