Evil Pop, Inc., has an average collection period of 50 days. Its average daily i

ID: 2749224 • Letter: E

Question

Evil Pop, Inc., has an average collection period of 50 days. Its average daily investment in receivables is $44,300. Assume 365 days per year.

What is the receivables turnover? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

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

Evil Pop, Inc., has an average collection period of 50 days. Its average daily investment in receivables is $44,300. Assume 365 days per year.

Accounts receivables turnover:

= Net credit sales÷Average accounts receivable

= $44,300×365÷$44,300×50

= 7.3 times

Annual credit sales:

= $44,300×365

= $16,169,500

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