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Ordonez Lumber Yard has a current accounts receivable balance of $442,016. Credit sales for the year just ended were $9,358,610. What is the receivables turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Receivables turnover times What is the days’ sales in receivables? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Days’ sales in receivables days How long did it take on average for credit customers to pay off their accounts during the past year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Average collection period days

Respuesta :

Answer:

Receivables turnover= Sales/ Accounts Receivables

Receivables turnover= $9,358,610 / $442,016

Receivables turnover= 21.173 times

Days' sales in receivables= 365 days/ Receivables turnover

Days' sales in receivables= 365 days/ 21.173 times

Days' sales in receivables= 17.239 days

Average collection period= Days' sales in receivables = 17.239 days