Faldo Corp Sells on Terms That Allow Customers 45 Days

question 108

Multiple Choice

Faldo Corp sells on terms that allow customers 45 days to pay for merchandise.Its sales last year were $425,000,and its year-end receivables were $60,000.If its DSO is less than the 45-day credit period,then customers are paying on time.Otherwise,they are paying late.By how much are customers paying early or late? Base your answer on this equation: DSO - Credit Period = Days early or late,and use a 365-day year when calculating the DSO.A positive answer indicates late payments,while a negative answer indicates early payments.Assume all sales to be on credit.Do not round your intermediate calculations.

• A) 5.16
• B) 8.10
• C) 6.20
• D) 6.53
• E) 6.73

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Definitions:

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is essential for hearing, converting sound vibrations into nerve impulses.

Snail-Shaped

Describing something that resembles the spiral shape of a snail's shell, often used in reference to the cochlea in the ear.

Hair Cells

Sensory cells found in the inner ear that are critical for hearing and balance, converting mechanical sound vibrations into electrical signals.

Permanent Hearing Loss

A lasting inability to hear partially or completely in one or both ears, which can result from genetic factors, aging, exposure to loud noise, or certain diseases.