Presented below are selected data from the financial statements of Hospital Supply Company for 2019,2018,and 2017.

$\begin{array}{lrrr}&2018&2017&2013\
\text { Total assets } & \$ 650,000 & \$ 821,000 & \$ 800,000 \
\text { Net credit sales } & 800,000 & 650,000 & 720,000 \
\text { Accounts receivable } & 85,000 & 79,000 & 74,000 \
\text { Accounts receivable turnover ratio } & 9.8 \text { times } & 8.5 \text { times } & 8.0 \text { times }
\end{array}$
A) Calcul ate Hospital Supply's number of days' sales in receivables for 2019 and 2018. Assume 360 days in a year.
B) What is the meaning of your answer in part (A)?

Question

Presented below are selected data from the financial statements of Hospital Supply Company for 2019,2018,and 2017.
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 $\begin{array}{lrrr}&2018&2017&2013\
\text { Total assets } & \$ 650,000 & \$ 821,000 & \$ 800,000 \
\text { Net credit sales } & 800,000 & 650,000 & 720,000 \
\text { Accounts receivable } & 85,000 & 79,000 & 74,000 \
\text { Accounts receivable turnover ratio } & 9.8 \text { times } & 8.5 \text { times } & 8.0 \text { times }
\end{array}$ ​
 A) Calcul ate Hospital Supply's number of days' sales in receivables for 2019 and 2018. Assume 360 days in a year.
B) What is the meaning of your answer in part (A)?

Quizplus · Accepted Answer

The Answer of Presented below are selected data from the financial statements of Hospital Supply Company for 2019,2018,and 2017.
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 $\begin{array}{lrrr}&2018&2017&2013\
\text { Total assets } & \$ 650,000 & \$ 821,000 & \$ 800,000 \
\text { Net credit sales } & 800,000 & 650,000 & 720,000 \
\text { Accounts receivable } & 85,000 & 79,000 & 74,000 \
\text { Accounts receivable turnover ratio } & 9.8 \text { times } & 8.5 \text { times } & 8.0 \text { times }
\end{array}$ ​
 A) Calcul ate Hospital Supply's number of days' sales in receivables for 2019 and 2018. Assume 360 days in a year.
B) What is the meaning of your answer in part (A)?

Presented Below Are Selected Data from the Financial Statements of Hospital