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question 47

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Use the following information for questions
The financial statements of Bolero Manufacturing Inc. report net credit sales of $900,000 and accounts receivable of $80,000 and $40,000 at the beginning of the year and end of the year, respectively.
-What is the average collection period for accounts receivable in days (rounded) ?


Definitions:

Assembly Division

A segment of a manufacturing company responsible for putting together the final products.

Variable Cost

Expenses that change in proportion to the level of production or sales volume, such as raw materials and direct labor.

Transfer Price

The rate at which products and services are exchanged among departments within the same organization.

Opportunity Cost

The value of the best alternative that is foregone when a particular decision is made.

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