Jones and Co

question 104

Multiple Choice

Jones and Co.,reported average receivables of $550,000 in its most recent annual report.If total credit sales were $3,000,000 what was Jones and Co.'s average collection period? (Use 365 days in a year.)

• A) 67 days
• B) 29 days
• C) 82 days
• D) 21 days

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to a share of the company's profits through dividends and/or capital appreciation.

Net Profit Margin

A profitability ratio calculated by dividing net income by revenue, indicating the percentage of each dollar of revenue that results in net profit.

Total Assets

The sum of all current and long-term assets held by a company, indicating the total resources that a company has at its disposal.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the owners' claim on the business.