7.2 4. Cengage ., CengageNOWy2 X @ Broward College Ho (?) Homepage-BCOnli e Cheg

Question

7.2

4.

Cengage ., CengageNOWy2 X @ Broward College Ho (?) Homepage-BCOnli e Chegg Study l Guide + v ? ? ?? ? v2 cengagenow con intake ssignment takeAssignmen Main doi voker-assignments& takeAssignmentSessionLoca or-assignment t ? ? ?? Ch 17-2 Practice Exercises Book Show Me How Calculator Print Item 1. PE.17-01.ALGO 2. PE.17-02.ALGO 3. PE.17-03.ALGO 4. PE.17-04.ALGO 5. PE.17-05.ALGO 6. PE. 17-07.ALGO 7. PE.17-08.ALGO Accounts Receivable Analysis A company reports the following Sales Average accounts receivable (net) Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover b. Number of days' sales in receivables $591,300 65,700 days 8. PE.17-09.ALGO 9. PE.17-10.ALGO 10. PE. 17-11.ALGO Check My Work PreviousS Next 11:29 PM 4/18/2018 2 more Check My Work uses remaining Type here to search

Explanation / Answer

a)

Accounts receivable turnover

= Net Credit Sales / Average accounts receivable

= $591,300 / $65,700

= 9 times

b)

Number of days’ sales in receivables

= 365 / Accounts receivable turnover

= 365 / 9

= 40.56 days

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