Faldo Corp Sells on Terms That Allow Customers 45 Days

question 105

Multiple Choice

Faldo Corp sells on terms that allow customers 45 days to pay for merchandise.Its sales last year were $325,000,and its year-end receivables were $60,000.If its DSO is less than the 45-day credit period,then customers are paying on time.Otherwise,they are paying late.By how much are customers paying early or late? Base your answer on this equation: DSO − Credit Period = Days early or late,and use a 365-day year when calculating the DSO.A positive answer indicates late payments,while a negative answer indicates early payments.

• A)21.27
• B)22.38
• C)23.50
• D)24.68
• E)25.91

Understand and apply the high-low method to analyze cost behavior.

Understand and apply the least-squares regression method to analyze cost behavior.

Distinguish between variable, fixed, and mixed costs.

Estimate variable cost per unit/activity.

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A personality trait characterized by outgoing, energetic, and sociable behaviors.

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The largest state in the United States, located in the northwest extremity of North America, known for its diverse terrain of open spaces, mountains, and forests.

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Extraversion

A personality dimension that involves being outgoing, energetic, sociable, and often seeking stimulation in the company of others.