Answer :

Accounts receivable turnover
8.95

Average collection period
70.78 Days

Working Notes for the above answer is as under

Accounts receivable turnover = Net credit sales divided by average net accounts receivable

Accounts receivable turnover

= 34540/[(3,393+4,329)/2]

= 8.95

Average collection period (i.e., days in receivable)

= 365/Accounts receivable turnover

Average collection period (i.e., days in receivable)

= 365/8.95

= 40.78 days

Note: These ratios are based on accounts receivable (net)