Calculate the average days to collect receivables, Accounting Basics

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Calculate the average days to collect receivables

Double West Suppliers (DWS) reported sales for the year of $360,000, all on credit. The average gross profit percentage was 40 percent on sales. Account balances follow:

	Beginning		Ending
Accounts receivable (net)	$	51,000	$	61,000
Inventory		67,000		46,000

Required:
1.	Compute the following turnover ratios.

2.	By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory.

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Accounting Basics: Calculate the average days to collect receivables

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Accounting Basics: Calculate the average days to collect receivables

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Accounting Basics: Calculate the average days to collect receivables

Reference No:- TGS0555577

Recent Questions Asked Accounting Basics

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