The PetShop (PS) has sales of $398,600, costs of $254,800, depreciation expense of $26,400, account receivable...

 

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The PetShop (PS) has sales of $398,600, costs of $254,800, depreciation expense of $26,400, account receivable (A/R) balance of $95,000, account payable balance of $55,000, interest expense of $1,600, and a tax rate of 34 percent. If PS has net Income of $76,428, and incurs no additional cost other than pure production cost, how long on average does it take the company to collect account receivables during the year? a. 115 days b. 64 days c. 100 days d. 87 days e. 30 days The PetShop (PS) has sales of $398,600, costs of $254,800, depreciation expense of $26,400, account receivable (A/R) balance of $95,000, account payable balance of $55,000, interest expense of $1,600, and a tax rate of 34 percent. If PS has net Income of $76,428, and incurs no additional cost other than pure production cost, how long on average does it take the company to collect account receivables during the year? a. 115 days b. 64 days c. 100 days d. 87 days e. 30 days

Answer rating: 100% (QA)

Answer d 87 days Explanation To calculate how long on ... View the full answer