ABCD Corporation has credit sales of $10,640,000 and receivables of $1,520,000. a. What is the receivables turnover?

Question:

ABCD has credit sales of $10,640,000 and receivables of $1,520,000.
a. What is the receivables turnover?
b. What is the average collection period (days sales outstanding)?
c. If the company offers credit terms of 30 days, are its receivables past due?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...