Quiz – Determine the average collection period for The HOT Truck
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition
Calculate the average collection period for The HOT Truck, a company that operates specialty vehicles providing hot food and beverages for firms in outlying regions. The company has annual sales, a cost of goods sold, and a profit margin. Additionally, the average accounts receivable balance is given. Determine how long it takes for this food truck to collect payment for its services on average.