Question

Friends of Target has sales of 859,700, cost of goods sold of648,200, net income of 93,100, and accounts receivable of102,300. How many days of sales are in receivables?

Answer 1

To calculate the number of days of sales in receivables, you need to use the formula (Accounts Receivable / Net Sales) * Number of days in the period. However, the number of days in the period is not provided in the question.

Step-by-step explanation:

To calculate the number of days of sales in receivables, we need to use the formula:

Days of sales in receivables = (Accounts Receivable / Net Sales) * Number of days in the period

First, we calculate the net sales by subtracting the cost of goods sold from the sales:

Net Sales = Sales - Cost of Goods Sold = $859,700 - $648,200 = $211,500

Then, using the formula, we can calculate the number of days of sales in receivables:

Days of sales in receivables = (102,300 / 211,500) * Number of days in the period

Since the number of days in the period is not provided, we cannot calculate the exact number of days of sales in receivables.