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.