Harper corp.’s | Business & Finance homework help
The average number of days late can be calculated by dividing the year-end receivables (42,500) by the total sales for the year (395,000). This gives a ratio of 10.81%, which can be converted to an average number of days late (using a 30 day month as a reference point) by multiplying it by 30 and then dividing it by 100. The answer is 9.73 days – so on average, customers are paying around 9-10 days late.