Potaw Company Reported the Following Data at the End of 2014

question 76

Multiple Choice

Potaw Company reported the following data at the end of 2014: $\begin{array}{lr}\text { Sales revenue ( } 75 \% \text { on credit) }&\$300,000\\\text { Expenses ( } 26 \% \text { on credit) }&60,000\\\text { Accounts receivable, net at December } 31,2014 \text { (a decrease }\\\text { of } \$ 4,000 \text { during 2014) } & 8,000 \\\text { Total assets } & 200,000 \\\text { Stockholders' equity } & 150,000\end{array}$ The average number of days to collect receivables during 2014 is closest to:

• A) 16.2.
• B) 14.3.
• C)36.5.
• D)21.9.

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Definitions:

Quantity of Labor

The total number of labor hours employed or the total number of workers employed in the production of goods and services.

Excise Tax

A tax levied on specific goods, services, or transactions, often imposed on alcohol, tobacco, and gasoline.

Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of it that suppliers are willing to produce and sell.

Perfectly Inelastic

A scenario where the demand for a good does not change in response to changes in price, represented by a vertical demand curve.