Stealth Company's 2013 average collection period is:

Name: Stealth Company's 2013 average collection period is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The average collection period is calculated by dividing the average accounts receivable by the annual credit sales and multiplying by 365 days. Stealth Company's average accounts receivable is $1,200,000 and its annual credit sales are $10,000,000. Therefore, Stealth Company's average collection period is 1,200,000 / 10,000,000 * 365 = 73 days.

Stealth Company's 2013 Average Collection Period Is