Entwhistle Ltd Entwhistle's Credit Terms Are Net 30 Days on Average Entwhistle

question 34

Multiple Choice

Entwhistle Ltd.supplied the following information for the years-ended December 31, 2013 and 2014: $\begin{array}{lcc} \text { Current Assets: } & 2014 & 2013 \\\text { Cash } & \$ 15,000 & 16,750 \\\text { Accounts Receivable } & 247,500 & 299,000 \\\text { Inventory } & 275,000 & 166,250 \\\text { Prepaid expenses } & 4,000 & 4,000 \\\\\text { Current liabilities }&\$541,500&\$1,084,000\\\\\text { Net credit sales } & \$ 2,400,000 & \$ 2,255,000 \\\text { Purchases } & \$ 1,700,000 & \$ 1,590,000\end{array}$ Entwhistle's credit terms are net 30 days On average Entwhistle holds inventory for how many days?

• A)47.4 days
• B)50.6 days
• C)59 days
• D)65 days

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Definitions:

Management Development Program

Training designed to improve the skills and broaden the knowledge of current and potential executives.

Entire Industry

The comprehensive scope of businesses and organizations involved in the production, distribution, and sale of goods and services within a particular sector.

On-The-Job Training

A form of training occurring while an employee is performing their job tasks, involving hands-on experience to learn various skills necessary for their role.

Projecting Sales

The process of estimating future sales volumes based on historical data, market analysis, and sales trends.