Question

RCES Brief Exercise 8-11 Suppose the 2017 financial statements of 3M Company report net sales of $25.3 billion. Accounts receivable (net) are $3.40 billion at the beginning of the year and $3.41 billion at the end of the year. Compute 3M Company's receivable turnover (Round answer to 1 decimal place, 0.9. 12.5.) Accounts receivable tumover ratio times tudy SHOW LIST OF ACCOUNTS LINK TO TEXT INTERACTIVE TUTORIAL Compute 3M Company's average collection period for accounts receivable in days. (Round answer to 1 decimal place, 0,9, 12.5. Use 365 days for calculation.) Average collection period days Click if you would like to Show Work for this question: Open Show Work

Answer 1

7.4 times. Accounts receivable turnover ratio Accounts receivable turnover Net Credit sales - Average accounts recenable whereas, Average accounts receivable , Receivable at begginning Receivable at end of year of year 2 $3.40 billion + $ 3.41billion 2 $3.405 billion Therefore, Accounts receivable turnover $ 25.3 billion $ 3.405 billion 7.43 times § 7-4 times (Rounded off to 1 decimal Place

2 49.1 Average Collection period days Average collection period Average accounts receivable x_365.deps. Net credit sales 365 Il -X $ 3.405 billion $25.3 billion 49.) days Please feel free to ask any queries and do Solution was satisfactory. Thank you. give a thumbrup if the