Use the following information.
Windswept, Inc.
2010 Income Statement
($ in millions)
Net sales $9,570
Cost of goods sold 7,890
Depreciation 465 Earnings before interest and taxes $1,215
Interest paid 110
Taxable Income $1,105
Taxes 387
Net income $718
Windswept, Inc.
2009 and 2010 Balance Sheets
($ in millions)
2009 2010 2009 2010
Cash $250 $280 Accounts payable $1,470 $1,685
Accounts rec. 1,040 940 Long-term debt 1,140 1,320
Inventory 1,880 1,715 Common stock $3,420 $3,040
Total $3,170 $2,935 Retained earnings 630 880
Net fixed assets 3,490 3,990
Total assets $6,660 $6,925 Total liab. equity $6,660 $6,925
What is the days' sales in receivables for 2017?
a. 62.62 days
b. 31.81 days
c. 31.37 days
d. 45.01 day's
e. 33.85 days

Respuesta :

Answer:

35.85 days

Explanation:

I suppose the question reads "What is the days' sales in receivables for 2010?"

To find the days' sales in receivables for 2010, use the following:

Days Sales in Receivales for 2010 = (Accounts Receivable in 2010 / Annual Sales) * 365

Where accounts receivable in 2010 from the information given is 940.

Annual sales = $9,570

Therefore,

Days Sales in Receivales for 2010 = [tex] (\frac{940}{9570}) * 365 [/tex]

= 35.85 days

The days' sales in receivables for 2010 is 35.85 days