Question

Analysis of a company's financial statements: Below are simplified versions of the balance sheet and income statement for Toys by Tom, Inc. Use this information to answer the following question.All the customers of Toys by Tom, Inc. take advantage of credit offered. On average, they take ______ days to pay outstanding bills.

Answer 1

The right approach will be "30".

Step-by-step explanation:

Debtors

= 1000

Sales

= 12000

As we know,

⇒
`Debtor \ day \ outstanding = (Debtors)/(Credit \ sales)* 365`

On substituting the estimated values, we get

⇒
`=(1000)/(12000)* 365`

⇒
`=30.41 \ i.e., \ 30`

So that the above is the appropriate answer.