Evil Pop, Inc., has an average collection period of 48 days. Its average daily i

Question

Evil Pop, Inc., has an average collection period of 48 days. Its average daily investment in receivables is $89,100. 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 48 days. Its average daily investment in receivables is $89,100. Assume 365 days per year.

Explanation / Answer

collection period = 365/turnover ie= 48 = 365/turnover turnover = 7.61 turnover =sales/receivables ie= 7.61 = sales/89100 ie. sales = 678051

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