calculate the average collection period. For the year ended December 31 Sales (all on credit) Cost of

calculate the average collection period.
  

Transcribed Image Text:

For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses Depreciation Operating profit Interest expense Profit before taxes Taxes (30%) Net income $ 875,000 600,000 $ 275,000 30,000 55,000 $ 190,000 25,000 $ 165,000 49,500 $ 115,500 Refer to the tables above. What is the firm's average collection period? Assume a 360-day calendar year. For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses Depreciation Operating profit Interest expense Profit before taxes Taxes (30%) Net income $ 875,000 600,000 $ 275,000 30,000 55,000 $ 190,000 25,000 $ 165,000 49,500 $ 115,500 Refer to the tables above. What is the firm's average collection period? Assume a 360-day calendar year.

Answer rating: 100% (QA)

We will use both the income statement and balance sheet ite... View the full answer