Answered: 4. Assume a business sold a total of…

4. Assume a business sold a total of $839,500 during the current year and its accounts receivable balance at the end of the year was $73,600. What is the number of days' sales in receivables?|

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 44E: Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note:...

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4. Assume a business sold a total of $839,500 during the current year and its accounts receivable balance at the end
of the year was $73,600. What is the number of days' sales in receivables?|

Expert Solution

Step 1

Number of days' sales in receivables is the number of days it take to collect the accounts receivable.

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