Pinecrest Company Use the Selected Data from Pinecrest Company's Financial Statements to Statements

question 7

Multiple Choice

Pinecrest Company
Use the selected data from Pinecrest Company's financial statements to answer the following question.
-Refer to the data for Pinecrest Company.
Competitors in Pinecrest Company's industry have an average accounts receivable turnover of 10.8 times.Pinecrest reported accounts receivable at December 31, 2016 of $42,000 and has normal credit terms requiring payment within 30 days.Pinecrest's accounts receivable turnover for 2016 is:

• A)probably indicating that the company probably has stricter credit terms and policies than the industry as a whole, which may repel potential buyers.
• B)of no value to bankers and other creditors.
• C)less efficient in its collection policies in 2016 than the industry as a whole.
• D)less than the industry, which means that its customers are paying on their accounts in a more timely manner than are customers reflected by the industry average.

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Definitions:

Calcium Carbonate

A chemical compound with the formula CaCO3, found in rocks as the minerals calcite and aragonite and is the main component of pearls and the shells of marine organisms, snails, and eggs.

Caliche

A soil-related accumulation of calcareous material that cements sand, gravel, and other materials, commonly forming a hard layer.

Landscape Features

Physical attributes of the land surface, including mountains, rivers, plains, and valleys.

Pediment

A gently sloping, low-relief plain or erosion surface carved onto bedrock, commonly with a thin, discontinuous veneer of sediment.