I need help with the last part. Essence of Skunk Fragrances, Ltd., sells 8,200 u

Question

I need help with the last part.

Essence of Skunk Fragrances, Ltd., sells 8,200 units of its perfume collection each year at a price per unit of $430. All sales are on credit with terms of 1/10, net 40. The discount is taken by 60 percent of the customers. Calculate the average collection period. Average collection period 22 days What is the receivables turnover? (Use 365 days a year. Round your answer to 3 decimal places. (e.g., 32.161) Receivables turnover 16.49 times What is the amount of the company's average receivable? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Average receivables

Explanation / Answer

Average receivable= Average collection period*((Total units*Cost per unit)/Days in a year)

                               = 22*((8,200*$430)/365)

                               = $212,526.03

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