Parr Hardware Store Had Net Credit Sales of $6,500,000 and Cost

question 197

Multiple Choice

Parr Hardware Store had net credit sales of $6,500,000 and cost of goods sold of $5,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $600,000 and $700,000, respectively. The receivables turnover was

• A) 7.7 times.
• B) 10.8 times.
• C) 9.3 times.
• D) 10 times.

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Definitions:

Competitive Niche

A specialized segment of the market for a particular kind of product or service where a business can achieve a dominant position.

Strategic Management Tool

Instruments, frameworks, or methodologies used by individuals and organizations to analyze, plan, and execute strategies aimed at achieving competitive advantage.

Trend Analysis

The practice of collecting information and attempting to spot a pattern, often used in financial markets, business strategy, and research.

SWOT Analysis

A strategic planning tool used to identify an organization's Strengths, Weaknesses, Opportunities, and Threats.