Evil Pop, Inc., has an average collection period of 29 days. Its average daily i

ID: 2717604 • Letter: E

Question

Evil Pop, Inc., has an average collection period of 29 days. Its average daily investment in receivables is $69,300. Assume 365 days per year.

What is the receivables turnover? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

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

Evil Pop, Inc., has an average collection period of 29 days. Its average daily investment in receivables is $69,300. Assume 365 days per year.

Receivables turnover = Days in the period / Average collection period

= 365 / 29

= 12.5862 times

Annual credit sales = Days in the period * Average daily accounts receivable / Average collection period

= 365 * $69,300 / 29

= $872,224.14

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