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A7X, Inc., has an average collection period of 23 days. Its average daily investment in receivables...

A7X, Inc., has an average collection period of 23 days. Its average daily investment in receivables is $82,000.

What is the receivables turnover? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

Receivables turnover             times

What are annual credit sales? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Annual credit sales            $

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Answer #1

Receivables turnover = 365/Average collection period

Receivables turnover = 365/23

Receivables turnover = 15.870 times

Annual credit sales = Receivables turnover × Average daily receivables

Annual credit sales = 15.869565 × $82,000

Annual credit sales = 1,301,304.35

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