The Ward Company Has Provided the Following Information

question 32

Multiple Choice

The Ward Company has provided the following information:
Net sales totaled $750,000.
Beginning net accounts receivable was $65,000.
Ending net accounts receivable was $85,000.
What was Ward's average collection period?

• A)73 days
• B)41.8 days
• C)31.6 days
• D)36.5 days

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Definitions:

Carbon Dioxide

A colorless, odorless gas (CO2) produced by burning carbon and organic compounds and by respiration, absorbed by plants in photosynthesis.

Hemoglobin

A protein found in red blood cells responsible for transporting oxygen from the lungs to the rest of the body and returning carbon dioxide back to the lungs.

CO

Carbon monoxide, a colorless, odorless gas formed by incomplete combustion of carbon-containing materials, toxic to humans and animals when inhaled.

Carboxyhemoglobin

A complex formed by the binding of carbon monoxide to hemoglobin, which can impede the blood's ability to transport oxygen.