Heaton Corp

question 44

Multiple Choice

Heaton Corp.sells on terms that allow customers 45 days to pay for merchandise.Its sales last year were $425,000, 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) 6.20
• B) 6.53
• C) 6.86
• D) 7.20
• E) 7.56

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Definitions:

Agrarian Colony

A settlement primarily engaged in agriculture, established for the purpose of producing crops and livestock.

Native Americans

The indigenous peoples of the United States, including various tribes, who were the original inhabitants of the land prior to European colonization.

Fur Trappers

Individuals or workers engaged in the trapping and trading of animal fur, often in the wilderness, a common occupation during the frontier days of North American exploration and settlement.

Slave Traders

Individuals or companies involved in the buying and selling of human beings for the purpose of forced labor, a practice prominent in historical global trade networks.