John Byers owns and operates Byers Building Supplies. The following information was taken from his financial statements:

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John Byers owns and operates Byers Building Supplies. The following information was taken from his financial statements:

Balance Sheet 12/31/-2 12/31/-1

Accounts Receivable $700 $500

Inventory 300 100

Income Statement

Net Credit Sales $7,200

Cost of Goods Sold 5,000

All sales are made on account.

REQUIRED

Based on the above information, on average, approximately how many days pass from the time Byers purchases inventory until he receives cash from customers?

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College Accounting

ISBN: 978-0538745192

20th Edition

Authors: Heintz and Parry

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