Homework Answers
days of receivables = 365 / receivables turonver ratio
40 = 365 / receivables turonver ratio
receivables turonver ratio = 365 / 40
receivables turonver ratio = 9.125
Receivables turover ratio = net credit sales / average receivables
9.125 = 650,000 / average receivables
average receivables = 650,000 / 9.125
average receivables = $71,232.877
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