Jolly Co Had Net Sales of $111,500 and Accounts Receivable of of $12,700

question 12

Multiple Choice

Jolly Co. had net sales of $111,500 and accounts receivable of $12,700. Its days' sales uncollected was:

• A) 46.6.
• B) 11.7.
• C) 23.3.
• D) 41.6.
• E) 42.5.

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Definitions:

Cash Flows

The sum total of cash and assets similar to cash that shift into and out of a commercial establishment.

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a monthly basis.

Mortgage

A legal agreement by which a bank or creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Balance of Loan

The remaining amount owed on a debt after periodic repayments have been made.