The 2016 income statements of Leggett & Platt, Inc., reports net sales of $3,749.9 million in 2016 and $3,917.2 million in 2015. The balance sheet reports accounts and other receivables, net of $486.6 million at December 31, 2016, $520.5 million at December 31, 2015, and $523.3 million at December 31, 2014.
Calculate the average number of days that receivables were outstanding for both years. Explain in layman's terms, what this ratio means.

Question

The 2016 income statements of Leggett & Platt, Inc., reports net sales of $3,749.9 million in 2016 and $3,917.2 million in 2015. The balance sheet reports accounts and other receivables, net of $486.6 million at December 31, 2016, $520.5 million at December 31, 2015, and $523.3 million at December 31, 2014. 
Calculate the average number of days that receivables were outstanding for both years. Explain in layman's terms, what this ratio means.

Quizplus · Accepted Answer

The Answer of The 2016 income statements of Leggett & Platt, Inc., reports net sales of $3,749.9 million in 2016 and $3,917.2 million in 2015. The balance sheet reports accounts and other receivables, net of $486.6 million at December 31, 2016, $520.5 million at December 31, 2015, and $523.3 million at December 31, 2014. 
Calculate the average number of days that receivables were outstanding for both years. Explain in layman's terms, what this ratio means.

The 2016 Income Statements of Leggett & Platt, Inc