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:

Wage

A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.

Utility Function

A mathematical representation of how choices lead to different levels of happiness or satisfaction, showcasing preferences over a set of goods or outcomes.

Milk Consumption

The amount of milk drunk or used by individuals or populations over a specific period.

Endowment

The total resources available to an individual or economy, including land, labor, capital, and technology.