Sheridan Clothing Store had a balance in the Accounts Receivable account of $450000 at the beginning of the year and a balance of $490000 at the end of the year. Net credit sales during the year amounted to $3760000. The average collection period of the receivables in terms of days was

47.6 days.

365 days.

45.6 days.

43.7 days.

Rieger Company had $300,000 of current assets and $180,000 of current liabilities before borrowing $70,000 from the bank with a 5-month note payable. What effect did the borrowing transaction have on the working capital of Rieger Company?

Increased working capital by $70,000.

Had no effect on working capital.

Decreased working capital by $70,000.

Decreased working capital by $50,000.