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 $ 150,000 $ 200,000
Inventory 900,000 1,000,000
Accounts payable 1,100,000 1,200,000
What is the accounts receivable days outstanding at the end of Year 2?
Accounts Receivable days outstanding = Accounts receivable/(Credit ...
The solution explains how to calculate the accounts receivable days outstanding.