Based on the Following Data for the Current Year, What

question 114

Multiple Choice

Based on the following data for the current year, what is the number of days' sales in receivables? $$\begin{array} { l r } \text { Sales on account during year } & \$ 584,000 \\\text { Cost of goods sold during year } & 300,000 \\\text { Accounts receivable, beginning of year } & 45,000 \\\text { Accounts receivable, end of year } & 35,000 \\\text { Inventory, beginning of year } & 90,000 \\\text { Inventory, end of year } & 110,000\end{array}$$

• A) 7.3
• B) 2.5
• C) 14.6
• D) 25

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Definitions:

Expected Rate

The anticipated return on an investment, often used to estimate the future value of investments or to guide investment decisions.

Beta

An indicator of how much a stock's price fluctuates compared to the general market, representing its relative risk.

Risk-Free Rate

The expected yield on an investment that is considered completely risk-free, often linked to government securities.

Market Risk Premium

The additional return expected by investors for taking on the risk of investing in the stock market over a risk-free investment.