For the Year Just Ended, James' Drafting Supplies Had Average

question 75

Multiple Choice

For the year just ended, James' Drafting Supplies had average accounts receivable of $880,000 and total credit sales of $4,800,000. Throughout the year, a factor purchased accounts receivable
From the firm at a 2% discount. What was the firm's days in receivables?

• A) 61 days
• B) 65 days
• C) 67 days
• D) 71 days
• E) 74 days

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Definitions:

Negative Correlation

A statistical relationship between two variables in which one variable increases as the other decreases.

Positive Correlation

A relationship between two variables where both variables move in the same direction.

Work-Related Stress

The stress experienced due to factors in the workplace, including workload, lack of support, or job insecurity.

Marital Happiness

The state of experiencing joy and satisfaction in a marriage, often measured through emotional, physical, and social well-being.