On Average Your Firm Sells $26,500 of Items on Credit

question 114

Multiple Choice

On average your firm sells $26,500 of items on credit each day. Your average operating cycle is 51 days and your firm acquires and sells inventory on average every 19 days. What is your average accounts receivable balance?

• A) $503,500
• B) $848,000
• C) $1,012,500
• D) $1,315,500
• E) $1,855,000

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Definitions:

Statistics

The science of collecting, analyzing, interpreting, and presenting data.

Data

The facts and figures collected, analyzed, and summarized for presentation and interpretation.

Nominal Scale

A measurement scale used for categorization without a natural order or rank.

Numeric

Relating to, measurable in, or expressed as numbers or numerical data.