At the End of the Third Year, the Treadwell Tire

question 131

Multiple Choice

At the end of the third year, the Treadwell Tire Company had accounts receivable of $66,600, and at the end of the fourth year, the company had accounts receivable of $72,600. If the company's net sales revenue during the fourth year were $876,000, the days to collect during year four was (rounded to one decimal place) :

• A) 12.6
• B) 29.0
• C) 8.0
• D) 34.0

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Definitions:

Fractional Shares

Smaller portions of a full share of stock, representing a piece of equity less than one full share.

Shareholder Derivative Action

A lawsuit brought by a company shareholder against the company's executives, directors, or other insiders, typically for breach of fiduciary duties.

Corporate Assets

Resources owned by a corporation, including physical properties, intellectual property, and financial assets, which are used to operate the business.

Preemptive Right

The right of existing shareholders to purchase additional shares in a company before they are offered to the public, often to maintain their percentage of ownership.