Question

Financial statement data for the year ending December 31 for Flagg Co. are as follows: Sales $4,250,000 Accounts receivable: Beginning of year 600,000 End of year 630,000 Determine the number of days' sales in receivables for the year.

Answer 1

Answer:

Average Receivables= (600,000+630,000)/2=615,000

Days sales in receivables= Average receivables/ average sales per day

Average sales per day= 4,250,000/365=11,644

Days in receivables = 615,000/11,644=52.88

Explanation: