Syed's Industries Has Accounts Receivable of $700, Inventory of $1,200

question 383

Multiple Choice

Syed's Industries has accounts receivable of $700, inventory of $1,200, sales of $4,200, and cost of goods sold of $3,400. How long does it take Syed's to both sell its inventory and then collect the
Payment on the sale?

• A) 128 days
• B) 146 days
• C) 163 days
• D) 190 days
• E) 211 days

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Definitions:

Direct Materials

Raw materials that can be directly linked to the production of finished goods and are an integral part of the finished product.

Manufacturers

Entities or individuals that produce goods using raw materials and labor, often involving machinery and equipment.

Factory Overhead

Indirect costs related to manufacturing that cannot be directly associated with specific product units, including rent, utilities, and maintenance of equipment.

Labor Costs

The total sum of all wages, benefits, and taxes paid to employees by an employer for work performed.