Chapter 15.III, Problem 13RE

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8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

a. Calculate the average collection period for Shutterbug Cameras from Exercise 10 assuming that the credit sales for the year amounted to $8,550,000.

b. Assuming that the industry average for similar firms is 48 days, evaluate the company's ratio.

Company |
Cash |
MarketableSecurities |
AccountsReceivable |
QuickAssets |
Acid Test Ratio |

10. | Shutterbug Cameras | $24,400 | $140,000 | $750,300 |

**(a)**

To determine

**To calculate:** The average collection period of the company Shutterbug Cameras Inc. which has accounts receivable of

Explanation

**Given Information:**

The company Impact builders Inc. which has accounts receivable of

**Formula used:**

The formula to compute the average collection period is,

**Calculation:**

Consider that accounts receivables are

**(b)**

To determine

**To calculate:** The company’s ratio by assuming that the industry average for similar firms is

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