Data from Estrin Corporation's most recent balance sheet and income statement appear below: The average sale period for this year is closest to: (Round your intermediate calculations to 2 decimal places.)
A) 49.7 days
B) 109.9 days
C) 100.0 days
D) 58.4 days

Question

Data from Estrin Corporation's most recent balance sheet and income statement appear below:  The average sale period for this year is closest to: (Round your intermediate calculations to 2 decimal places.)
A) 49.7 days 
B) 109.9 days 
C) 100.0 days 
D) 58.4 days

Quizplus · Accepted Answer

Average Sale Period = (Accounts Receivable / Annual Credit Sales) * 365
Annual Credit Sales = Total Revenue - Sales Discounts - Sales Returns
Annual Credit Sales = 6,422 + 652 + 260 = 7,334
Accounts Receivable = 1,035
Average Sale Period = (1,035 / 7,334) * 365 = 51.67 or 52 days (rounded to nearest whole number)

Therefore, the closest option is B) 109.9 days.

Data from Estrin Corporation's Most Recent Balance Sheet and Income