18)Given the information below, answer questions from #17 to #21.Accounts Receivable$20,000 ($30,000 in the previous year)Total Current Assets$300,000Investments$50,000Total Assets$1,000,000Total Current Liabilities$100,000Total Long-Term Debt$400,000Total Liabilities$500,000Net Income$300,000Total Revenue (Sales) $900,000Industry average: Current ratio1Industry average: Solvency ratio2.5Industry average: Profit margin ratio35%What is the Average Collection Period of this company?

Ratio analysis is a method of measuring the financial position of the organization with different…

Answered: Given the information below, answer…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 19P

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18)Given the information below, answer questions from #17 to #21.

Accounts Receivable	$20,000 ($30,000 in the previous year)
Total Current Assets	$300,000
Investments	$50,000
Total Assets	$1,000,000
Total Current Liabilities	$100,000
Total Long-Term Debt	$400,000
Total Liabilities	$500,000
Net Income	$300,000
Total Revenue (Sales)	$900,000
Industry average: Current ratio	1
Industry average: Solvency ratio	2.5
Industry average: Profit margin ratio	35%

What is the Average Collection Period of this company?

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