The Strong Box has sales of $859,700, cost of goods sold of $648,200, net income of $93,100, and accounts receivable of $102,300. How many days of sales are in receivables?

Question

Quizplus · Accepted Answer

To calculate the days of sales in receivables, you first find the daily sales by dividing the total sales by 365 days. Then, divide the accounts receivable by the daily sales to find how many days of sales are in receivables. $$ \text{Daily Sales} = \frac{\text{Total Sales}}{365} = \frac{859,700}{365} = 2355.07 $$$$ \text{Days of Sales in Receivables} = \frac{\text{Accounts Receivable}}{\text{Daily Sales}} = \frac{102,300}{2355.07} = 43.43 \text{ days} $$Therefore, the correct answer is 43.43 days.

The Strong Box Has Sales of $859,700, Cost of Goods