If Baxter Unlimited Has Annual Sales of $5,000,000 (80% on Credit)

question 69

Multiple Choice

If Baxter Unlimited has annual sales of $5,000,000 (80% on credit) , and receivables equal to 35% of credit sales, what is their receivables turnover?

• A)3.6 times
• B)2.9 times
• C)2.3 times
• D)4.2 times

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Definitions:

Indebtedness

The feeling of owing something, whether emotional or financial, to another person or entity.

Major Components

Essential parts or factors that constitute a larger system or complex entity.

Goals

are defined objectives or targets that an individual, group, or organization strives to achieve.

Cognitive Component

Part of an attitude that encompasses beliefs, thoughts, and attributes about an object or situation.