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Foundations Of Financial Management
Found in: Page 81
Foundations Of Financial Management

Foundations Of Financial Management

Book edition 16th
Author(s) Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Pages 768 pages
ISBN 9781259277160

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Short Answer

A firm has sales of $3 million, and 10 percent of the sales are for cash. The year-end accounts receivable balance is $285,000. What is the average collection period? (Use a 360-day year.)

The average collection period of the firm is 38 days.

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Step by Step Solution

Net credit sales 

Average receivable turnover ratio

Average collection period

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