Smart and Smiley Incorporated has an average collection period of 74 days. - 4545

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Request Description

Smart and Smiley Incorporated has an average collection period of 74 days. What is the accounts receivable turnover ratio for Smart and Smiley? You may use a 360-day year.

a.4.86

b.2.47

c.2.66

d.1.68

Average debtors collection period = Average debtors/Sales * 360 = 74. Accounts receivable turnover = average debtors/sales.

 
Solution Description

       Smart and Smiley Incorporated has an aver