420 85 278 $ 517 2008 2009 2008 2009 1,490 1,530 510 726 3,220 3,610 $5,780 $6,0

Question

420     

85     

278     

$ 517     

2008

2009

2008

2009

1,490     

1,530      

  510     

726    

3,220     

3,610      

$5,780     

$6,080      

$5,780    

$6,080    

What is the days' sales in receivables? (use 2009 values)

19.3

81.3

47.0

40.5

33.9

Galaxy United, Inc.
2009 Income Statement
($ in millions)   Net sales $8,500        Less: Cost of goods sold 7,200        Less: Depreciation

420     

  Earnings before interest and taxes 880        Less: Interest paid

85     

  Taxable Income 795        Less: Taxes

278     

  Net income

$ 517     

Explanation / Answer

Days sales in receivables= Accounts receivables(sales/365)

=$790/($8500/365)

=33.9235

=33.9 days

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