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Question
A firm has an accounts receivables turnover equal to 33.5 days, an average inventory equal to $120,000, and an average accounts payable balance equal to $52,000. What is the firm's receivables collection period? In your computations, assume there are 360 days in a year.
a. 3.00 days
b. 77.31 days
c. 14.52 days
d. 12.25 days
e. 10.75 days
Answer
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Related questions
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e. Firms with relatively low debt ratios have higher expected returns when business is poor.