Calculating the Average Collection Period

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• Net credit position

  Accounts receivable = average daily credit sales X Average collection period receivable Average daily sales = 7,000 Average collection period = 28 days Accounts Receivable = 7,000 X 28 = $196,000 Accounts payable = average daily credit purchases

• Corporate Finance : Liquidity Ratios, Profitability, Collection Period, Inventory Turnover, Leverage and Sustainable Growth

  If the profit margin is 12 percent, what is net income? What is ROA? What is ROE? 3. Calculating the Average Collection Period. Pirate Lumber Yard has a current accounts receivable balance of $308, 165.

• a cash conversion cycle

  (a) Inventory collection period = average inventory / (cost of goods sold / 365) = 2.75 million / (40.0 million / 365) = 2.75 / 1.110 = 25 days Remember to use cost of goods sold or cost of sales in the denominator here because we are calculating

• Brenda Smith, Inc. Accounts Receivable

  = $914,063 =7312500/8 Level of inventory= $914,063 The solution provides the steps for calculating accounts receivable, collection period, level of inventories.

• Calculating asset activity ratios

  Average collection period = Average receivables /Sales * 365 = 55.514/2004.016*365 =10.11 days The collection period for the company is good.

• Corporate Finance

  , Inc., has weekly credit sales of $18,000, and the average collection period is 29 days. The cost of production is 80 percent of the selling price. What is Vitale's average accounts receivable figure? *Please see the attachments*.

• Corporate Finance : Liquidity Ratio, Collection Period, Inventory Turnover, Leverage Ratios, Du Pont Identity, Payables and Market Value

  Calculating the Average Collection Period. Pirate Lumber Yard has a current accounts receivable balance of $308, 165. Credit sales for the year just ended were $2, I 3 1 ,5 1 6. What is the receivables turnover? The days' sales in receivables?

• Calculating Financial Ratios for Phone Corporation

  Average collection period k. Return on equity l. Return on assets m. Payout ratio a.

• Net credit position - Accounts receivables accounts payables

  The problem also shows how the changes in credit period (average collection period) changes the net credit position and its impact on cash flow position.