On December 31, 2012, Seau Inc.'s financial statements showed the following:

- Refer to Exhibit 6-2. Given the information above and assuming a 365-day business year, what was Seau's average collection period (rounded) during 2012?

Question

On December 31, 2012, Seau Inc.'s financial statements showed the following:

- Refer to Exhibit 6-2. Given the information above and assuming a 365-day business year, what was Seau's average collection period (rounded) during 2012?

Quizplus · Accepted Answer

The average collection period is calculated by dividing the accounts receivable by the average daily sales. If the information provided in Exhibit 6-2 leads to an average collection period of 49 days, then option C is correct.