2A2N CORNWALL CORPORATION’S NET ACCOUNTS RECEIVABLE WERE $68,000 AND...
60.
CSO: 2A2c
LOS: 2A2n
Cornwall Corporation’s net accounts receivable were $68,000 and $47,000 at the
beginning and end of the year, respectively. Cornwall’s condensed Income Statement is
shown below.
Sales
$900,000
Cost of goods sold
527,000
Operating expenses
175,000
Operating income
198,000
Income tax
79,000
Net income
$119,000
Cornwall’s average number of days’ sales in accounts receivable (using a 360-day year)
is
a.
8 days.
b.
13 days.
c.
19 days.
d.
23 days.