Calculate the average collection period

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Reference no: EM131537423

Essence of Skunk Fragrances, Ltd., sells 6,500 units of its perfume collection each year at a price per unit of $710. All sales are on credit with terms of 1.5/15, net 90. The discount is taken by 65 percent of the customers.

1. Calculate the average collection period. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Average collection period days

2. What is the receivables turnover? (Use 365 days a year. Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

Receivables turnover times

3. What is the amount of the company’s average receivables? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131537423

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