Qwik Stop Has Accounts Receivable of $4,830, Inventory of $9,083

question 325

Multiple Choice

Qwik Stop has accounts receivable of $4,830, inventory of $9,083, sales of $38,600, and cost of goods sold of $21,400. How many days does it take the firm to both sell their inventory and collect the payment on the sale?

• A) 186 days
• B) 193 days
• C) 201 days
• D) 214 days
• E) 217 days

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Definitions:

Financial Asset

An asset that derives value from a contractual claim, such as cash, ownership interest in an enterprise, a bond, stock, or right to receive cash from a contract.

Accounts Receivable

Money owed by customers to a company for goods or services that have been delivered or used but not yet paid for.

Forward Exchange Contracts

Financial derivatives that lock in an exchange rate today for the purchase or sale of a currency on a future date.