Based on the Following Data for the Current Year, Determine

question 3

Multiple Choice

Based on the following data for the current year, determine the days' sales in accounts receivable. ? $\begin{array}{lr}\text { Net sales on account during the year } & \$ 1,080,000 \\\text { Cost of merchandise sold during the year } & 750,000 \\\text { Accounts receivable, beginning of year } & 46,500 \\\text { Accounts receivable, end of year } & 36,500 \\\text { Inventory, beginning of year } & 170,000 \\\text { Inventory, end of year } & 232,000\end{array}$

• A) 14.03
• B) 11.3
• C) 13.79
• D) 12.5

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Definitions:

Lawnmowers

Mechanical devices or machines used for cutting grass to maintain a desired length or appearance of a lawn.

Snowblowers

Machines designed for removing snow from surfaces, such as driveways and sidewalks, using a rotating auger to collect and eject the snow to the side.

Inventory Turnover

A metric that reveals the number of times a company's inventory is sold and restocked within a certain period.

Days in Inventory

A financial metric that indicates the average number of days a company takes to sell its entire inventory.