Rise Above This, Inc., has an average collection period of 35 days. Its average

ID: 2707841 • Letter: R

Question

Rise Above This, Inc., has an average collection period of 35 days. Its average daily investment in receivables is $68,300. 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 35 days. Its average daily investment in receivables is $68,300. Assume 365 days per year.

Receivables turnover = 365 / average collection period = 365 / 35 = 10.4286 times

Annual credit sales = daily investment in receivables/ collection period * 365 = 68,300/35*365 = $ 712,271.43

Hope this helped ! Let me know in case of any queries.

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