Han Corp's Sales Last Year Were $440,000,and Its Year-End Receivables

question 4

Multiple Choice

Han Corp's sales last year were $440,000,and its year-end receivables were $52,500.The firm sells on terms that call for customers to pay 30 days after the purchase,but some delay payment beyond Day 30.On average,how many days late do customers pay? Base your answer on this equation: DSO - Allowed credit period = Average days late,and use a 365-day year when calculating the DSO.Assume all sales to be on credit.Do not round your intermediate calculations.

• A) 11.65
• B) 12.74
• C) 12.33
• D) 13.55
• E) 15.58

---

Definitions:

Coefficient Of Determination

A statistical measure represented by \(R^2\) that indicates the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Coefficient Of Correlation

A statistical measure that calculates the strength and direction of the linear relationship between two variables on a scatter plot.

Wet Mount

A technique for preparing specimens on a microscope slide using a drop of liquid to keep the sample alive or to enhance optical properties.

Iris Diaphragm

A component of optical devices, such as microscopes and cameras, that can adjust the size of the aperture to control the amount of light that passes through the lens.