Max's Tire Center Company

question 71

Multiple Choice

Max's Tire Center Company
Selected data from the financial statements of Max's Tire Center are provided below.

- Refer to the selected data provided for Max's Tire Center. What is Max's days-in-receivables ratio in 2012?

• A) The days-in-receivables ratio is 50.62 in 2012.
• B) The days-in-receivables ratio is 54.75 in 2012.
• C) The days-in-receivables ratio is 42.62 in 2012.
• D) The days-in-receivables ratio is 60.04 in 2012.

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Definitions:

Open Market

A marketplace that is open to all participants, where buyers and sellers engage in trade without significant restrictions or regulations.

Interest Rates

The percentage of a sum of money charged for its use, often expressed annually.

Excess Reserves

The amount of reserves that a bank holds beyond the required minimum set by the central bank or regulatory authority.

Liquidity

Money or things that can be quickly and easily converted into money with little or no loss of value.