Twist Corp. has a current accounts receivable balance of $337,800. Credit sales

Question

Twist Corp. has a current accounts receivable balance of $337,800. Credit sales for the year just ended were $4,644,750.

a. SWhat is the company's receivables turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

b. 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.)

c. 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.)

Explanation / Answer

a) Receivables turonover = Sales/Account Receivables = 4644750/337800 = 13.75

b) Companys days sale in receivables = 365/(Receivables Turnover )= 365/13.75 = 26.54 days

c) Average days for customers to pay off = 26.54 days

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