The Following Data Exists for Carley Company Calculate the Accounts Receivable Turnover and the Average Collection Period

question 27

Essay

The following data exists for Carley Company. $\begin{array}{lrr}&\underline{2016}&\underline{2015}\\\text { Accounts Receivable } & \$ 50,000 & \$ 70,000 \\\text { Net Sales } & 500,000 & 410,000\end{array}$
Calculate the accounts receivable turnover and the average collection period for accounts receivable in days for 2016.

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Definitions:

Close Substitute

A product or service that can easily replace another in consumption or use, due to similarities in characteristics or functionalities.

Monopolistic Competitors

Companies that are in a competitive market structure but with differentiated products, allowing them small amounts of market power to set prices.

Industry Supply Curve

A graphical representation showing how much product a market can offer at various prices, for a specific industry.

Market Price

Market Price is the current value at which an asset or service can be bought or sold in an open market.