Refer to the following selected financial information from Whirlpool Company.

-Compute the company's days' sales uncollected for Year 2.(Use 365 days a year.)
A)43.9.
B)43.7.
C)46.2.
D)85.4.
E)42.7.

Question

Refer to the following selected financial information from Whirlpool Company.

-Compute the company's days' sales uncollected for Year 2.(Use 365 days a year.) 
A)43.9. 
B)43.7. 
C)46.2. 
D)85.4. 
E)42.7.

Quizplus · Accepted Answer

Days' sales uncollected is calculated by dividing accounts receivable by average daily sales.

Accounts receivable = $2,513 million 
Average daily sales = ($21,747 million + $21,235 million) / 2 / 365 = $115.8 million

Days' sales uncollected = $2,513 million / $115.8 million = 21.7 days = 43.7 (rounded to one decimal place)

Therefore, the correct answer is B, 43.7.

Refer to the Following Selected Financial Information from Whirlpool Company