Use the tables for the question(s)below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
-Ideko's Accounts Receivable Days is closest to:
A)84 days.
B)95 days.
C)90 days.
D)75 days.

Question

Use the tables for the question(s)below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation 
-Ideko's Accounts Receivable Days is closest to:
A)84 days. 
B)95 days. 
C)90 days. 
D)75 days.

Quizplus · Accepted Answer

Accounts Receivable Days can be calculated as (Accounts Receivable / Annual Credit Sales) x 365. Using the information from the table, we can calculate the Accounts Receivable Days as follows: (32 / 360) x 365 = 32.2 days, which is closest to Option C, 90 days.

Use the Tables for the Question(s)below