Westonci.ca is the premier destination for reliable answers to your questions, brought to you by a community of experts. Join our Q&A platform and connect with professionals ready to provide precise answers to your questions in various areas. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

A company has annual sales of $32,000 and accounts receivables of $2,200. The gross profit margin is 31.3%. The receivable days estimated from the data above is ______.

Sagot :

Answer: 80.17 days

Explanation:

The Receivable days estimated is calculated by the formula:

= Accounts receivable * 365 / (Annual sales * Gross profit margin)

= 2,200 * 365/ (32,000 * 31.3%)

= 2,200 * 0.03644169329

= 80.17 days

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.