Question
Snowless Winters Inc.s only assets are inventory of $125,000, net fixed assets of $157,250, cash of $65,000, and receivables of $45,000. On average, it takes
Snowless Winters Inc.’s only assets are inventory of $125,000, net fixed assets of $157,250, cash of $65,000, and receivables of $45,000. On average, it takes Snowless Winters 21.87 days to collect its receivables and all of its sales are on credit.
What much in sales does the company have for every dollar of total assets if the company’s profit margin is 16.2 percent and 80 percent of its sales are on credit?
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
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