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Average collection period of receivables in days

The financial information below was taken from the annual financial statements of Gant Company.
2003 2002
Current assets $200,000 $170,000
Current liabilities 80,000 90,000
Total assets 550,000 450,000
Sales 720,000 600,000
Cost of goods sold 472,000 510,000
Inventory 100,000 110,000
Receivables (net) 100,000 60,000
Net income 60,000 48,000

Instructions
Calculate the following ratios for Gant Company for 2003.
1. Current ratio.
2. Average collection period of receivables in days.
3. Return on assets.
4. Profit margin ratio.

Solution Preview

The financial information below was taken from the annual financial statements of Gant Company.
2003 2002
Current ...

Solution Summary

This provides the steps to calculate the average collection period of receivables in days

$2.19