Your Company Has Net Sales of $468,300 and Average Net

question 24

Multiple Choice

Your company has net sales of $468,300 and average net receivables of $111,500 for the year.Which of the following statements is correct? (Round all calculations to one decimal place.)

• A) The receivables turnover ratio is 4.2 and the days-to-collect is 0.01.
• B) The receivables turnover ratio is 0.2 and the days-to-collect is 1,520.
• C) The receivables turnover ratio is 4.2 and the days-to-collect is 86.9.
• D) The receivables turnover ratio is 0.2 and the days-to-collect is 87.6.

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Definitions:

Osmosis

The movement of water molecules through a semipermeable membrane from a region of lower solute concentration to one of higher concentration.

Charged Molecules

Molecules that have an electric charge due to the loss or gain of one or more electrons.

Lipid Molecules

Organic molecules that are fatty acids or derivatives, insoluble in water but soluble in organic solvents, playing key roles in energy storage, structure, and signaling.

Permeability

A measure of the ability of a material to allow fluids or gases to pass through it.