Answer:
235.5 days
Explanation:
Chik's chicken has accounts receivables of $6,333
The sales for the year for Chik's chicken is $9,800
The first step is to calculate the receivables turnover
= $9,800/$6,333
= 1.55
Therefore the average collection period for Chik's chicken can be calculated as follows
= 365/1.55
= 235.5 days
Hence the average collection period for Chik's chicken is 235.5 days
