XYZ's Receivables Turnover Is 4x

question 104

Multiple Choice

XYZ's receivables turnover is 4x. The accounts receivable at year-end are $600,000. The average collection period is 90 days. What was the sales figure for the year assuming all sales are on credit?

• A) $60,000
• B) $6,000,000
• C) $2,400,000
• D) None of these

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Definitions:

Inventory Purposes

The reasons or objectives for maintaining a stock of goods or materials, such as ensuring product availability, meeting customer demand, or controlling production processes.

Method of Delivery

The approach or means by which a product or service is provided to the customer, such as in-person, online, or through mail order.

Services

Services, perks, or gratifications available for buying that are inherently immaterial and do not culminate in the possession of anything.

Privately Owned

Refers to assets, businesses, or corporations owned by non-governmental entities or individuals.