Would someone kindly help with this? I can\'t get receivables turnover for 2014,

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Would someone kindly help with this? I can't get receivables turnover for 2014, (system doesn't like my answer of 11.8) and the average collection period.

Exercise 8-12 Your answer is partially correct. Try again The following information in U.S. $ millions) was taken from the December 31 financial statements of Potash Cor of Saskatchewan Tnc.: 2015 2014 2013 Trade accounts receivable Allowance for doubtful accounts Trade accounts receivable, net Revenues Total current assets Total current liabilities gross $475 $715 $507 468 708 500 6,279 7,115 7,305 1,553 1,938 2,189 1,747 2,198 2,113 (a) For 2015 and 2014, calculate Potash's current ratio, receivables turnover, and average collection period. (Round current ratio and receivables turnover to 1 decimal place, e.g. 5.2. Round average collection period to nearest whole day, e.q. 15.) 2015 2014 0.89: 1 0.88:1 Current ratio 10 times 11.8 times Receivables turnover 34.1 days 36.3 days Average collection period

Explanation / Answer

Receivable Turnover = Net Sales / Average Receivables

= 7115 / [(715+507)/2]

= 11.64 Times

Collection Period = 365 / Receivable Turnover

= 365 / 11.64

= 31.34 Days

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