At year-end, StickStick has cash of $ 22 comma 000$22,000, current accounts receivable of $ 80 comma 000$80,000, merchandise inventory of $ 24 comma 000$24,000, and prepaid expenses totaling $ 5 comma 900$5,900. Liabilities of $ 64 comma 000$64,000 must be paid next year. Assume accounts receivable had a beginning balance of $ 40 comma 000$40,000 and net credit sales for the current year totaled $ 480 comma 000$480,000. How many days did it take StickStick to collect its average level of receivables?
At year-end, StickStick has cash of $ 22 comma 000$22,000, current accounts receivable of $ 80 comma 000$80,000, merchandise inventory of $ 24 comma 000$24,000, and prepaid expenses totaling $ 5 comma 900$5,900. Liabilities of $ 64 comma 000$64,000 must be paid next year. Assume accounts receivable had a beginning balance of $ 40 comma 000$40,000 and net credit sales for the current year totaled $ 480 comma 000$480,000. How many days did it take StickStick to collect its average level of receivables?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.17E
Related questions
Question
100%
At year-end,
StickStick
has cash of
$ 22 comma 000$22,000,
current accounts receivable of
$ 80 comma 000$80,000,
merchandise inventory of
$ 24 comma 000$24,000,
and prepaid expenses totaling
$ 5 comma 900$5,900.
Liabilities of
$ 64 comma 000$64,000
must be paid next year. Assume accounts receivable had a beginning balance of
$ 40 comma 000$40,000
and net credit sales for the current year totaled
$ 480 comma 000$480,000.
How many days did it take
StickStick
to collect its average level of receivables?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
