Mirotronic Co. has a receivables turnover of 4 times. Sales are $20,000. What is the collection period? (Use 365 days in a year.)

Name: Mirotronic Co. has a receivables turnover of 4 times. Sales are $20,000. What is the collection period? (Use 365 days in a year.)
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

The collection period is calculated as 365 days divided by the receivables turnover rate. With a turnover of 4 times, the collection period is 365 / 4 = 91.25 days.