
Answer:
a. 8.65 times
b. 42 days
Explanation:
The computation of Receivables turnover ratio and days to collect is shown below:-
a. Receivables turnover ratio = Net sales Ă· Average receivables
= $43,500 Ă· ($5,180 + $4,880) Ă· 2
= $43,500 Ă· ($10,060 Ă· 2)
= $43,500 Ă· $5,030
= 8.65 times
b. Days to collect = 365 Ă· Receivables turnover ratio
= 365 Ă· 8.65 times
= 42 days