The Following Balance Sheet Information Was Provided by Western Company

The following balance sheet information was provided by Western Company: $\begin{array}{lrr}\text { Assets } & \text { Year 2 } & \text { Year 1 } \\\text { Cash } & \$ 3,400 & \$ 2,900 \\\text { Accounts receivable } & \$ 22,000 & \$ 20,000 \\\text { Inventory } & \$ 38,000 & \$ 44,000\end{array}$ Assuming Year 2 net credit sales totaled $134,000, what was the company's average days to collect receivables? (Use 365 days in a year. Do not round your intermediate calculations.)

A) 54.5 days
B) 114.4 days
C) 59.9 days
D) 57.2 days

Correct Answer:

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