Question

Total current assets (CA) $20,000
Accounts receivable (AR) $10,000
Current liabilities (CL) $11,000
Inventory (INV) $4,000
Net sales $30,000
Total assets $25,000
Net income $5,000
Calculate average day’s collection.
A. 12 days C. 1.2 years
B. 120 days D. 12 years
B.120 days is my answer