Question

A company has net income of $218,000, a profit margin of 8.70%, and an accounts receivable balance of $132,850. What is the company’s days’ sales in receivables?

Answer 1

Answer:

okkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk

Answer 2

Answer:

35.33 days-

Explanation:

154,000 / 0.083 = $1,855,422 total sales

1,855,422 x 72% = $1,335,904 credit sales

1,335,904 / 129,360 = 10.33 times--Receivables turnover

365 / 10.33 = 35.33 days--Day's sales in receivables