Tanglewood Clothing Store reported the following selected items at June 30, 2017 (last year - 2016 - amounts are also given as needed)
Cash $ 80,000
Accounts Receivable, net:
June 30, 2017
June 30, 2016
125,000
153,000
Accounts Payable 45,000
Cost of Goods Sold 475,000
Merchandise Inventory
June 30, 2017
June 30, 2016
320,000
280,000
Net Credit Sales Revenue 1,200,000
Long-Term Assets 520,000
Long-Term Liabilities 140,000
Other Current Assets 150,000
Other Current Liabilities 130,000
Short-term Investments 200,000
Compute Tanglewood's days' sales in receivables for 2017. Show your computations.
What will be an ideal response
Days' sales in receivables:
365 days / Accounts receivable turnover ratio
365 / 9.80 = 38 days
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