Answer
27. 4 days
Work Step by Step
The accounts receivable turnover ratio is computed as follows:
Net Sales /Average Trade Receivables (net) = 12,442,000,000 / 932,500,000* = 13.34 times
13.34 is the Accounts Receivable Turnover
(Average trade receivables = (912,000,000 + 953,000,000) /2 = 932,500,000*)
The average collection period for accounts receivable in days is=
365 days/Accounts Receivable Turnover = 365 /13.34 = 27. 4 days
