Answer and Explanation:
The computations are as follows
a. For company receivable turnover
As we know it is
= Credit Sales ÷ current account receivable balance
= $2,940,600 ÷ $457,615
= 6.43 times
b.
Now
company's days' sales in receivables is
= 365 ÷ Receivables turnover ratio
= 365 ÷ 6.43
= 56.77 days
c. Therefore the average collection period is the same as days sales in receivable i.e 56.77 days