Respuesta :
Calculate the average collection period for dotte inc. if its accounts receivables were $500 and $600 at the end of each of the last two years, and its revenue over the last year was $3,000: 67 days
Sales are the money an agency earns from the sale of its services and products. Cash drift is the internet sum of money being transferred into and out of an organization. Revenue provides a degree of the effectiveness of an organization's income and advertising, while cash flow is greater of a liquidity indicator.
In bookkeeping, revenues are credited due to the fact revenues purpose proprietor's fairness or stockholders' equity to increase. recollect that the accounting equation, belongings = Liabilities + owner's fairness, have to usually be in balance.
Supply of revenue method segregation of revenues by way of supply. The number one classification differentiates district, intermediate, kingdom, and Federal revenue resources. revenues from restricted resources would be similarly classified as the use of the project/Reporting dimension.
Average of accounts receivables = (500+600)/2
= 550;
Receivable turnover ratio = 3000/550
= 5.4545 ;
Average collection period = 365/5.454 = 67 days ;
ans is 67 days.
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