Maxtel had net sales of $4,235 million and ending accounts receivable of $775 million. Its days' sales uncollected equals:
A) 298 days.
B) 66.8 days.
C) 19.4 days.
D) 81.8 days.
E) 65.2 days.

Question

Quizplus · Accepted Answer

Days' sales uncollected is calculated as (Ending Accounts Receivable / Net Sales) * 365. So, for Maxtel, it would be ($775 million / $4,235 million) * 365 = 66.8 days.

Maxtel Had Net Sales of $4,235 Million and Ending Accounts