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

question 126

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 its receivables turnover?

• A) 3.6 times
• B) 2.9 times
• C) 2.3 times
• D) 7.9 times

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Definitions:

Median

The middle value in a dataset when it is sorted in ascending order, or the average of the two middle values when the set is even.

Even Number

An even number is an integer that is exactly divisible by 2, such as 2, 4, 6, and so on.

Formula

A mathematical relationship or rule expressed in symbols.

Calculating Mean

The process of finding the average value of a set of numbers by adding them all up and dividing by the number of numbers.