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bonufazy [111]
2 years ago
14

The 2013 income statements of Leggett & Platt, Inc. reports net sales of $3,746.0 million. The balance sheet reports account

s receivable, gross of $482.6 million at December 31, 2013 and $465.4 million at December 31, 2012. The average collection period in 2013 was Select one: a. 46 days b. 10 days c. 47 days d. 8 days e. None of the above
Business
2 answers:
Mamont248 [21]2 years ago
7 0

Answer:

The answer is a. 46 days.

Explanation:

The average collection period is the time it takes on average to receive the cash from the credit sales. It is the time period for which an average accounts receivable pays the company. The formula for average collection period is,

Average collection period = (Average accounts receivable / Net sales) *365

Where 365 is taken as the number of days in a year.

The average of accounts receivables can be calculated by adding the opening and closing accounts receivables and dividing them by 2.

Average accounts receivables = (465.4 + 482.6) / 2 = 474 million

Average collection period = (474 / 3746) * 365 = 46.185 days rounded off to 46 days.

pickupchik [31]2 years ago
3 0

Answer:

The correct option is A, 46 days

Explanation:

Average collection period=365 days/average receivables turnover ratio

Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts

Receivable

Net credit sales is $3,746.0 million

Average receivables=$482.6 million+$465.4 million=$474  million

Accounts receivables turnover ratio=$3,746.0 million/$474  million

                                                            =7.90

Average collection period=365/7.90

                                           =46.20 days

When is rounded to a whole number it becomes 46 days,no doubt option A is the correct option .

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<h3>What is trade surplus?</h3>
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The complete question is given below:
If France had positive net exports last year, then it

A. sold more abroad than it purchased abroad and had a trade surplus.

B. sold more abroad than it purchased abroad and had a trade deficit.

C. bought more abroad than it sold abroad and had a trade surplus.

D. bought more abroad than it sold abroad and had a trade deficit.

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The marginal productivity theory of income distribution proposes that each individual should receive income based on their contribution to total output. The marginal productivity theory of income distribution has been criticized for the following reasons. Income from inheritance is inconsistent with the theory.

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B.

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When filing your tax return, what is the maximum amount you can deduct for a capital loss?.
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<h3>What is a tax return?</h3>

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