Question

The following data exists for Crane Company.

		2022		2021
Accounts Receivable		$84,000		$78,000
Net Sales		563,000		415,000

Calculate the accounts receivable turnover and the average collection period for accounts receivable in days for 2022. (Round answers to 1 decimal place, e.g. 15.2. Use 365 days for calculation.)

Accounts receivable turnover		Enter the accounts receivable turnover in times	times
Average collection period		Enter the average collection period in days	days

Answer 1

Crane Company	Amount $	Note
Accounts Receivable- 2022	84,000.00	A
Accounts Receivable- 2021	78,000.00	B
Average Accounts Receivable	81,000.00	C=(A+B)/2
Net Sales for 2022	563,000.00	D
Accounts receivable turnover	7.00	E=D/C
(Net Sales/ Average Accounts Receivable)
Average collection period	52.10	F=365/E
(365/ Accounts receivable turnover)