Sellograph Corporation reports sales of $10M for Year 2, with a gross profit margin of 40%. 20% of Sellograph's sales are on credit. (assume 360 day year)
Year 1 Year 2
Accounts receivable Y1-$ 150,000 Y2-$ 200,000
Inventory Y1-900,000 Y2-1,000,000
Accounts payable Y1-1,100,000 Y2-1,200,000
What is the accounts receivable days outstanding at the end of Year 2© BrainMass Inc. brainmass.com October 9, 2019, 11:32 pm ad1c9bdddf
Accounts receivable days outstanding = Average Receivables/Daily Credit ...
Response provides guidance regarding computation of accounts receivable days outstanding