In the Table Below the Information for Four Companies Is

question 2

Multiple Choice

In the table below the information for four companies is provided. $\begin{array}{|l|c|c|}\hline \text { Company } & \begin{array}{c}\text { Accounts Receivable } \\\text { turnover }\end{array} & \text { Average collection period } \\\hline \text { Martin } & 13.9 & 26.3 \\\hline \text { Lewis } & 13.3 & 27.4 \\\hline \text { D anforth } & 10.4 & 35.1 \\\hline \text { Gamer } & 14.5 & 25.2 \\\hline \text { Industry Average } & 13.0 & 28.1 \\\hline\end{array}$ If Garner's net credit sales are $435,000, what are its average net accounts receivable?

• A)$17,262
• B)$30,000
• C)$63,075
• D)$109,620

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Definitions:

Fiscal Year

A one-year period chosen by a business for financial reporting and taxation purposes, which may not coincide with the calendar year.

Accounting Period

A specific time period for which financial information is reported, commonly a year or a quarter.

Calendar Year

A period of time that starts on January 1 and ends on December 31, used for accounting and official purposes.

Debit Part

The left side of an accounting entry, which increases assets and expenses and decreases liabilities and equity.