A firm has average accounts receivable of $2 million,and,on average,takes 39 days to collect on its sales.What is the total amount of the firm's sales?
A)$2 million
B)$4.7 million
C)$18.7 million
D)$78 million
E)$19.5 million

Question

Quizplus · Accepted Answer

The firm's average daily sales are $2 million / 39 days = $51,282. Therefore, the total amount of the firm's sales is $51,282 * 365 days = $18.7 million.

A Firm Has Average Accounts Receivable of $2 Million,and,on Average,takes