What is the firm average accounts receivable balance

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Reference no: EM131931932

Question: Accounts receivable and costs. Randolph Company currently has an average collection period of 45 days and annual credit sales of $1 million. Assume a 360-day year.

What is the firm's average accounts receivable balance?

If the variable cost of each product is 60% of sales, what is the average investment in accounts receivable?

If the equal-risk opportunity cost of the investment in accounts receivable is 12%, what is the total opportunity cost of the investment in accounts receivable?

Reference no: EM131931932

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