Answer:
Days' sales in receivables = 33.2 days
Explanation:
<em>Days sales receivables is the average length of time it takes a business to collect the amount owing in respect of credit sales transaction. The shorter the days, the better.</em>
Receivable days = Average receivables /Credit sales × 365 days
Net Income = Profit margin × Sales
Let "y" represent total sales
161,000 = 7.6% × y
y = 161,000/7.6%= 2,118,421.053
Credit sales = 66%× total sales
= 66%×2,118,421.053 = 1,398,158
Days' sales in receivables = 127100/ 1,398,158 × 365 days =33.18 days
Days' sales in receivables = 33.2 days
