Pujols Lumber Yard has a current accounts receivable balance of $445,016. Credit

Question

Pujols Lumber Yard has a current accounts receivable balance of $445,016. Credit sales for the year just ended were $4,856,750.

What is the receivables turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

What is the days’ sales in receivables? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

How long did it take on average for credit customers to pay off their accounts during the past year? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

What is the receivables turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

What is the receivables turnover?

Receivables Turnover = Credit Sales/inventory

Receivables Turnover = $4,856,750/$445,016 =10.91 times

What is the days’ sales in receivables?

Days in sales receiables = 365/10.91 = 33.45 days

How long did it take on average for credit customers to pay off their accounts during the past year?

Same as (2) above--33.45 days

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

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