Mr. Husker\'s Tuxedos Corp. ended the year 2018 with an average collection perio

Question

Mr. Husker's Tuxedos Corp. ended the year 2018 with an average collection period of 40 days. The firm's credit sales for 2018 were $55.3 million. What is the year-end 2018 balance in accounts receivable for Mr. Husker's Tuxedos? (Enter your answer in dollars not in millions) Accounts receivable Last year, Hassan's Madhatter, Inc. had an ROA of 5.8 percent, a profit margin of 18.50 percent, and sales of $10 million. Calculate Hassan's Madhatter's total assets. (Enter your answer in millions.) Total assets million

Explanation / Answer

Average Collection period = Account receivable /Averge Sales
Account receivables = Average Sales *Average Collection Period = 55.3/365 * 40 = 6,060,273.97

Sales = 10 million
Net profit = Net Margin * Sales = 18.5% * 10 = 1.85 million
Total Assets =Net Profit/ ROA = 1.85/5.8% = 31,896,551.72

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