Rise Above This, Inc., has an average collection period of 54 days. Its average

Question

Rise Above This, Inc., has an average collection period of 54 days. Its average daily investment in receivables is $43,800. 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 54 days. Its average daily investment in receivables is $43,800. Assume 365 days per year.

Explanation / Answer

net credit sales = 365 * 43800 / 54 = 296055.5556

recievables turnover = 296055.5556 / 43800 = 6.7593

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

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