Explore BrainMass

Explore BrainMass

    Accounts receivable days outstanding

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    Solution Preview

    Accounts receivable days outstanding = Average Receivables/Daily Credit ...

    Solution Summary

    Response provides guidance regarding computation of accounts receivable days outstanding