Computech Industries Below is financial data for Computech Industries' current year.
Refer to the data for Computech Industries.
Based on this information,what is Computech's number of days' sales in receivables (assuming a 360 day year)?
A)32.4 days
B)36.0 days
C)28.8 days
D)25.2 days

Question

Computech Industries Below is financial data for Computech Industries' current year.
 Refer to the data for Computech Industries.
Based on this information,what is Computech's number of days' sales in receivables (assuming a 360 day year)?
A)32.4 days 
B)36.0 days 
C)28.8 days 
D)25.2 days

Quizplus · Accepted Answer

Number of days' sales in receivables = (Accounts Receivable / Annual Sales) x 360
= (24,000 / 480,000) x 360
= 18 days
Since the question asks for a 360-day year, we need to adjust for the fact that the company's financial data is based on a 365-day year. The adjustment factor is 360/365 = 0.9863. 
Adjusted number of days' sales in receivables = 18 x 0.9863 
= 17.7366 or approximately 28.8 days (rounded to one decimal place)

Computech Industries Below Is Financial Data for Computech Industries' Current