Aguilera Corp. has a current accounts receivable balance of $347,850. Credit sal

Question

Aguilera Corp. has a current accounts receivable balance of $347,850. Credit sales for the year just ended were $4,313,340. What is the company's receivables turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Receivables turmover times What is the company's days' sales in receivables? (Use 365 days a year. Do not round intermediate calculations. 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? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16) Average collection period days

Explanation / Answer

Receivables turonver=Credit Sales/Accounts Receivable=4313340/347850=12.4 times

Days sales in receivables=365/receivables turnover=365/12.4=29.435 days

Average collection period=Days sales in receivables=29.435 days

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