The Financial Statements of Danielle Manufacturing Company Report Net Sales

question 223

Multiple Choice

The financial statements of Danielle Manufacturing Company report net sales of $750,000 and accounts receivable of $60,000 and $90,000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days?

• A) 29.2
• B) 36.5
• C) 43.8
• D) 73

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Definitions:

Constraint

A limitation or restriction in a process or system that can impact performance or outcomes.

Constraints

Limitations or restrictions in a process, system, or project that hinder agility, performance, or the achievement of objectives.

Quantity X

An undefined variable representing a certain amount or level of production, product, or other measurable factors.

Violating

The act of breaking rules or norms, or failing to comply with legal or moral standards.