Question
Essence of Skunk Fragrances, Ltd., sells 7,100 units of its perfume collection each year at a price per unit of $510. All sales are on
Essence of Skunk Fragrances, Ltd., sells 7,100 units of its perfume collection each year at a price per unit of $510. All sales are on credit with terms of 1.5/10, net 60. The discount is taken by 45 percent of the customers. Calculate the average collection period. What is the receivables turnover? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 3 decimal places (e.g., 32.161).) What is the amount of the companys average accounts receivable? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)
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