Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
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Chapter 3, Problem 18P
Summary Introduction
To calculate: The average collection period of the firm.
Introduction:
Average collection period:
It refers to the average number of days between the time period of credit sales and that of receiving payment from invoiced customers. It ensures that the company has sufficient cash in hand to meet its financial requirements.
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Your company had net sales of $100,000 over the past year. One quarter of the sales were credit
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What is the average collection period? (Use a 360-day year. Do not round intermediate calculations. Round your final answer to
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Average collection period
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Baxley Brothers has a DSO of 46 days, and its annual sales are $5,840,000. What is its accounts receivable balance? Assume that it uses a 365-day year. Round your answer to the nearest cent.
Chapter 3 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
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