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Green Company has net credit sales of $100,000, an asset turnover ratio of 4, and a...

Green Company has net credit sales of $100,000, an asset turnover ratio of 4, and a receivables turnover ratio of 9. What is the average collection period?

11.1 days

36 days

40.6 days

25 days

please include the explanation

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Answer #1
Average Collection Period = 365/ Account Receivables turnover ratio
= 365 days /9
=40.6 days
Correct Option: THIRD
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