Question: Average collection cycle . Use the following account information for Rian Company. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company 12/31/14 12/31/13 Change
Average collection cycle.
Use the following account information for Rian Company.
| 2013 and 2014 Selected Balance Sheet Accounts of Rian Company |
| |||
| 12/31/14 | 12/31/13 | Change | ||
| Accounts receivable | $40,166 | $48,799 | $8,633 | |
| Inventory | $59,045 | $63,592 | $4,547 | |
| Accounts payable | $28,390 | $26,602 | $1,788 | |
| 2014 Selected Income Statement Items for Rian Company |
| |
| Cash sales | $391,000 | |
| Credit sales | $649,000 | |
| Total sales | $1,040,000 | |
| Cost of goods sold | $591,413 | |
Rian Company had set a target of 23.3 days for the collection cycle for 2014. If total sales had remained at $1,040,000, how much of the sales revenue would have needed to be cash sales for the company to have met the collection goal?
If total sales had remained at $1,040,000,how much of the sales revenue would have needed to be cash sales for the company to meet the collection goal?
$
(Round to the nearest dollar.)
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