Rise Above This, Inc., has an average collection period of 68 days. Its average

ID: 2635238 • Letter: R

Question

Rise Above This, Inc., has an average collection period of 68 days. Its average daily investment in receivables is $90,100. Assume 365 days per year.

What is the receivables turnover? (Round your answer to 4 decimal places. (e.g., 32.1616))

What are annual credit sales? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Rise Above This, Inc., has an average collection period of 68 days. Its average daily investment in receivables is $90,100. Assume 365 days per year.

Average collection period= 365/ Receivables turnover.

Or, 365/ACP= Receivables Turnover= 365/68= 5.3676 times

Annual credit sales = $90,100 * 365= $32,886,500

Regards.

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.