At year-end, simple has cash of $ 22 comma 000, current accounts receivable of $ 80 comma 000, merchandise inventory of $ 24 comma 000, and prepaid expenses totaling $ 4 comma 600. liabilities of $ 64 comma 000 must be paid next year. assume accounts receivable had a beginning balance of $ 40 comma 000 and net credit sales for the current year totaled $ 480 comma 000. how many days did it take simple to collect its average level of receivables? (assume 365 days/year. round any interim calculations to two decimal places. round the number of days to the nearest whole number.)

45.62 days

Explanation:

For computing the average number of days receivables, first, we have to calculate the account receivable ratio. The formula is shown below:

Account receivable ratio = Net credit sales ÷ Average accounts receivable

where,

Average account receivable = (Beginning account receivable balance + ending account receivable balance) ÷ 2

Now put these values to the above formula

So, the answer would be equal to

= $480,000 ÷ ($40,000 + $80,000 ÷ 2)

= $480,000 ÷ $60,000

= 8 times

Now, the average level of receivables equals to

= Total number of days in a year ÷ Account receivable ratio

= 365 days ÷ 8

= 45.62 days

anjan should should report alteast 5000 on the first apyment and 10,000 each year

explanation: