Mattel Had Net Sales of $4,235 Million and Accounts Receivable

question 42

Multiple Choice

Mattel had net sales of $4,235 million and accounts receivable of $775 million. To one decimal, Mattel's days' sales uncollected was:

• A)298.
• B)81.8.
• C)90.2.
• D)75.4.
• E)66.8.

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Definitions:

Annual Interest Rate

The percentage increase in money stored in a financial institution or invested, calculated on an annual basis.

Lockbox System

A service offered by banks to companies for the receipt of payment from customers, utilizing a special post office box to speed up the deposit process.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at par, used by governments to raise funds and investors to park short-term funds.

Collection Time

The average period it takes for a business to receive payments owed by its customers in terms of accounts receivable.