Table 3.1 Information (2013 values)
1. Sales totaled $110,000
2. The gross profit margin was 25 percent.
3. Inventory turnover was 3.0.
4. There are 360 days in the year.
5. The average collection period was 65 days.
6. The current ratio was 2.40.
7. The total asset turnover was 1.13.
8. The debt ratio was 53.8 percent.
-Accounts receivable for CEE in 2013 was ________. (See Table 3.1)
A) $14,056
B) $19,861
C) $14,895
D) $18,333

Question

Table 3.1  Information (2013 values)
1. Sales totaled $110,000
2. The gross profit margin was 25 percent.
3. Inventory turnover was 3.0.
4. There are 360 days in the year.
5. The average collection period was 65 days.
6. The current ratio was 2.40.
7. The total asset turnover was 1.13.
8. The debt ratio was 53.8 percent.
-Accounts receivable for CEE in 2013 was ________. (See Table 3.1)
A) $14,056 
B) $19,861 
C) $14,895 
D) $18,333

Quizplus · Accepted Answer

Average collection period = (Accounts Receivable / Annual credit sales) * 365
65 = (Accounts Receivable / 110,000) * 365
Accounts Receivable = $19,861

Table 3.1 Information (2013 Values)