Rise Above This, Inc., has an average collection period of 58 days. Its average

Question

Rise Above This, Inc., has an average collection period of 58 days. Its average daily investment in receivables is $91,100. Assume 365 days per year.

What is the receivables turnover? (Round your answer to 4 decimal places. (e.g., 32.1616))

What are annual credit sales? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Rise Above This, Inc., has an average collection period of 58 days. Its average daily investment in receivables is $91,100. Assume 365 days per year.

Explanation / Answer

Receivables Turnover Total Days/Average Collection Period 365/58 6.2931 Annual Credit sales Average Investment * Receivables Turnover 91100*6.2931                                        5,73,301.41

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