The Bear Rug has sales of $811,000.The cost of goods sold is equal to 63 percent of sales.The beginning accounts receivable balance is $41,000 and the ending accounts receivable balance is $38,000.How long on average does it take the firm to collect its receivables?

Question

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Receivables turnover = $811,000/[($41,000 + $38,000)/2] = 20.53165Receivables period = 365/20.53165 = 17.78 Days

The Bear Rug Has Sales of $811,000