Essence of Skunk Fragrances, Ltd., sells 6,500 units of its perfume collection each year at a price per unit of $710. All sales are on credit with terms of 1.5/15, net 90. The discount is taken by 65 percent of the customers.
1. Calculate the average collection period. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Average collection period days
2. What is the receivables turnover? (Use 365 days a year. Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
Receivables turnover times
3. What is the amount of the company’s average receivables? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)