Textile Mills has sales of $923,000,cost of goods sold of $748,000,and accounts receivable of $106,700.How long on average does it take the firm's customers to pay for their purchases?

Name: Textile Mills has sales of $923,000,cost of goods sold of $748,000,and accounts receivable of $106,700.How long on average does it take the firm's customers to pay for their purchases?
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Quizplus · Accepted Answer

Accounts receivable turnover = $923,000/$106,700 = 8.65042; Days' sales in receivables = 365/8.65042 = 42.19 days

Textile Mills Has Sales of $923,000,cost of Goods Sold of $748,000,and