Munson Auto Parts Inc. is a retailer of auto parts and supplies. They often deliver auto parts to various mechanic shops around town allowing the shops to pay for the parts delivered within 45 days. Recently, Munson's accountant has computed that the accounts receivable turnover ratio is "7". Assuming the company is open 365 days a year, is the company receiving payment from its customers in a timely enough fashion? Explain.

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The Answer of Munson Auto Parts Inc. is a retailer of auto parts and supplies. They often deliver auto parts to various mechanic shops around town allowing the shops to pay for the parts delivered within 45 days. Recently, Munson's accountant has computed that the accounts receivable turnover ratio is "7". Assuming the company is open 365 days a year, is the company receiving payment from its customers in a timely enough fashion? Explain.