Given the information below, answer questions from #17 to #21. Accounts Receivable $20,000  ($30,000 in the previous year) Total Current Assets $300,000 Investments $50,000 Total Assets $1,000,000 Total Current Liabilities $100,000 Total Long-Term Debt $400,000 Total Liabilities $500,000 Net Income $300,000 Total Revenue (Sales)  $900,000 Industry average: Current ratio 1 Industry average: Solvency ratio 2.5 Industry average: Profit margin ratio 35% What is the Average Collection Period of this company?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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  • 18)Given the information below, answer questions from #17 to #21.
Accounts Receivable $20,000  ($30,000 in the previous year)
Total Current Assets $300,000
Investments $50,000
Total Assets $1,000,000
Total Current Liabilities $100,000
Total Long-Term Debt $400,000
Total Liabilities $500,000
Net Income $300,000
Total Revenue (Sales)  $900,000
Industry average: Current ratio 1
Industry average: Solvency ratio 2.5
Industry average: Profit margin ratio 35%

What is the Average Collection Period of this company? 

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