Answer to Question #205461 in Economics for Mukesh Aksheriya

Question

For its more recent year a company had sales (all on credit) of Rs.830000 and cost of goods sold of Rs.525000 at the beginning of the year it’s account receivable were Rs.80000 and it’s inventory was Rs.100000. At the end of the year it’s accounts receivable were Rs.86000 and it’s inventory was Rs.110000

on average how many days of sale were in accounts receivable during the year

Answer 1

$Days Of Sale = \frac{365×(80,000 + 86,000)/2} {830,000 - 525,000} = 99.32$

days.