Windswept, Inc. 2008 Income Statement (S in millions) Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable Income Less: Taxes Net income $8,450 7,240 400 810 70 740 I Windswept, Inc. 2007 and 2008 Balance Sheets (S in millions) Cash Accounts rec. Inventory Total Net fixed assets Total assets 2007 2008 S 120 S 140 930 780 1,480 1.520 $2,530 $2,440 3,150 3,600 S5,680 56,040 Accounts payable Long-term debt Common stock Retained earnings 2007 $1,110 840 3,200 530 2008 $1,120 1,210 3,000 710 Total liabilities & equity $5,680 $6,040 What is the days' sales in receivables in 2011? What is the days' sales in receivables in 2011? A. 38.4 days B. 47.4 days C. 31.8 days D. 33.7 days E. 41.9 days Accounts receivable turnover for 2011 = $8,450 + $780 = 10.83; Days' sales in receivables for 2011 = 365 + 10.83 = 33.7 AACSB: Analytic How do they get 8450