Question

The Monster Truck operates several specialty vehicles that provide hot food and beverages for firms that have workers employed in outlying regions. The company has annual sales of $626,600. Cost of goods sold average 36 percent of sales and the profit margin is 4.9 percent. The average accounts receivable balance is $35,100. On average, how long does it take the company to collect payment for its services

Answer 1

20.45 days

Step-by-step explanation:

Calculation for how long does it take the company to collect payment for its services

Days in receivables = 365 days/($626,600/$35,100)

Days in receivables = 365 days/17.85

Days in receivables=20.45 days

Therefore how long does it take the company to collect payment for its services is 20.45 days