Question

the gross profit percentage = gross profit ÷ net sales revenue = 59.4 %. requirement 2. compute days sales in receivables during 2025. round intermediate calculations to three decimal places. assume all sales were on account. (round intermediate calculations to three decimal places, x.xxx and round final answer to the nearest whole day.) days sales in average receivables = 365 days ÷ accounts receivable turnover ratio = \boxed{} days. balance sheets low corporation balance sheet may 31, 2025 and 2024 assets 2025 2024 cash $ 2,200,000 $ 1,800,000 short - term investments 20,000,000 10,000,000 accounts receivable 7,800,000 5,760,000 merchandise inventory 6,800,000 7,500,000 other current assets 0,000,000 2,500,000 total current assets 54,000,000 27,360,000 all other assets 30,000,000 28,000,000 total assets $ 84,000,000 $ 55,360,000 liabilities 2025 2024 total current liabilities $ 26,000,000 $ 12,400,000 long - term liabilities 12,800,000 12,700,000 total liabilities 38,800,000 25,100,000 stockholders equity common stock 9,000,000 9,000,000 retained earnings 36,200,000 20,160,000 total equity 45,200,000 29,160,000 total liabilities and equity $ 84,000,000 $ 55,360,000 income statement low corporation income statement years ended may 31, 2025 and 2024 2025 2024 net sales revenue $ 51,200,000 $ 41,600,000 cost of goods sold 30,800,000 29,300,000 interest expense 700,000 140,000 all other expenses 8,700,000 7,800,000 net income $ 23,000,000 $ 4,360,000

Explanation:

Step 1: Calculate Accounts Receivable Turnover Ratio

The formula for Accounts Receivable Turnover Ratio is $\frac{\text{Net Sales Revenue}}{\text{Average Accounts Receivable}}$.

First, find the average accounts receivable.
Average Accounts Receivable = $\frac{\text{Accounts Receivable}_{2025} + \text{Accounts Receivable}_{2024}}{2}$
Accounts Receivable in 2025 = $7,800,000$, Accounts Receivable in 2024 = $5,760,000$
Average Accounts Receivable = $\frac{7,800,000 + 5,760,000}{2} = \frac{13,560,000}{2} = 6,780,000$

Net Sales Revenue in 2025 = $51,200,000$
Accounts Receivable Turnover Ratio = $\frac{51,200,000}{6,780,000} \approx 7.552$ (rounded to three decimal places)

Step 2: Calculate Days' Sales in Receivables

The formula for Days' Sales in Receivables is $\frac{365}{\text{Accounts Receivable Turnover Ratio}}$
Days' Sales in Receivables = $\frac{365}{7.552} \approx 48.33$ (rounded to the nearest whole day)

Answer:

48 days