XYZ's receivables turnover is 10x. The accounts receivable at year-end are $600,000. The average collection period is 90 days (3 months). What was the sales figure for the year?
A. $60,000
B. $6,000,000
C. $24,000,000
D. none of the above
Answer:B
XYZ's receivables turnover is 10x. The accounts receivable at year-end are $600,000. The average collection period is 90 days (3 months). What was the sales figure for the year?
A. $60,000 B. $6,000,000 C. $24,000,000 D. none of the above