Delta PDA Distributors Has an Investment in Accounts Receivable of $2,750,000

question 23

Multiple Choice

Delta PDA Distributors has an investment in accounts receivable of $2,750,000. Daily credit sales are $118,280. Delta's cost of goods sold represent 75% of the sales price. What is the level of accounts receivable?

• A) $2,750,00
• B) $3,666,667
• C) $2,062,500
• D) $1,925,000

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Definitions:

Innovative Solutions

Creative and effective approaches to solving problems or meeting new requirements, often leading to improved products or processes.

Upsizing

The practice of increasing the size or capacity of an organization through the expansion of operations or workforce.

Declining Revenues

A situation where a company or organization experiences a reduction in the income generated from its operations over a period.

Managing Finances

The process of organizing, planning, and controlling financial resources to achieve personal or organizational objectives.