Using the following end-of-year information, calculate the number of days' sales in receivables for Year 2.

Year 2: Sales are $82,500; average accounts receivable is $11,000.

Year 1: Sales are $78,000; average accounts receivable is $10,000.

a. 7.8

b. 7.5

c. 46.8

d. 48.7

Question

Business

Barron

12 January, 04:04

Using the following end-of-year information, calculate the number of days' sales in receivables for Year 2.

Year 2: Sales are $82,500; average accounts receivable is $11,000.

Year 1: Sales are $78,000; average accounts receivable is $10,000.

a. 7.8

b. 7.5

c. 46.8

d. 48.7

+1

Answers (1)

Know the Answer?

Zack Arnold · Answer 1

The number of days' sales in receivables for Year 2 is 48.7

Explanation:

The formula that is applicable to this scenario is the accounts receivable divided by sales multiplied by 365 days

The number of days' sales in receivables=$11,000/$82,500*365=48.67

The correct option is D, since the 48.67 was simply rounded down to one decimal place.

Using the following end-of-year information, calculate the number of days' sales in receivables for Year 2.Year 2: Sales are $82,500; average accounts receivable is $11,000.Year 1: Sales are $78,000; average accounts receivable is $10,000.a. 7.8b. 7.5c. 46.8d. 48.7

Using the following end-of-year information, calculate the number of days' sales in receivables for Year 2.

Year 2: Sales are $82,500; average accounts receivable is $11,000.

Year 1: Sales are $78,000; average accounts receivable is $10,000.

a. 7.8

b. 7.5

c. 46.8

d. 48.7