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Sagot :
The average collection period is 49.14.
What is the average collection period?
The average collection period calculates the number of times in a year that accounts receivable is converted to cash. Accounts receivable is the ratio of revenue and receivables.
Both accounts receivable and the average collection period are examples of activity ratios. Activity ratios calculates the efficiency with which a firm performs its daily tasks.
Accounts receivable = revenue / receivables
$2,953,600 / $397,615 = 7.428
The average collection period: 365/ receivables turnover
365 / 7.428 = 49.14
To learn more about average collection period, please check: https://brainly.com/question/3520743
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