Asked by
madeline renalds
on Dec 09, 2024
Verified
Tops, Inc. has sales of $705,000. The cost of goods sold is equal to 60% of sales. The beginning accounts receivable balance is $33,000 and the ending accounts receivable balance is $36,000. How long on average does it take the firm to collect its receivables?
A) 12.26 days
B) 17.86 days
C) 19.58 days
D) 20.44 days
E) 29.77 days
Accounts Receivable Balance
The total amount of money owed to a company by its customers for goods or services sold on credit.
Cost of Goods Sold
The direct costs associated with producing goods sold by a company, including materials and labor costs.
Sales
The exchange of goods or services for money; the revenue generated from such transactions.
- Gain proficiency in estimating and calculating the timescales for accounts payable and receivable using data from sales and the costs of goods sold.
Verified Answer
SS
Learning Objectives
- Gain proficiency in estimating and calculating the timescales for accounts payable and receivable using data from sales and the costs of goods sold.