calculate the firm  average collection period

 

ASSETS Cash Accounts Receivable Inventory Net Plant and Equipment Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable Accrued Expenses Long-Term debt Common Stock TEW COMPANY Balance Sheet As of December 31, 2007 Paid-In capital Retained earnings Total Liabilities and Stockholders' Equity Sales (all on credit) Cost of Goods Sold TEW COMPANY Income Statement For the Year Ended December 31, 2007 Gross Profit Sales and Administrative Expense Fixed Lease Expenses Depreciation Operating Profit Interest Expense Profit before Taxes Taxes (35%) Net Income O222 days Refer to the figure above. The firm's average collection period is O 57.6 days. 55.6 days. 6.3 days. $20,000 80,000 50,000 250,000 $400.000 $40,000 60,000 130,000 100.000 10,000 60.000 $400,000 $500,000 200,000 300,000 20,000 10,000 40,000 230,000 20.000 210,000 73.500 $136,500