Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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The average days account receiveable/ days of inventory?
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Step 1
Account receivable is the amount that receivable from outstanding at the end of the each business day. Average daily accounts receivable is determined by dividing account receivable by sales revenue.
Formula = Account receivable / Sales revenue *365
Sales revenue = $271 million
Account receivable = $31.8 million
Number of days = 365
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