Refer to the information for Toby's on the previous page.
Last year, Toby's Hats had net sales of $45,000,000 and cost of goods sold of $29,000,000. Toby's had the following balances:
January 1 December 31
Accounts receivable............$5,500,000..................$6,500,000
Inventories.........................3,000,000....................2,800,000
Required:
1. Calculate the average accounts receivable.
2. Calculate the accounts receivable turnover ratio.
3. Calculate the accounts receivable turnover in days.