Mace Auto Parts Company Sells to Retail Auto Supply Stores

question 18

Multiple Choice

Mace Auto Parts Company sells to retail auto supply stores on credit terms of "net 60." Annual credit sales are $300 million (spread evenly throughout the year) and its accounts average 28 days overdue.The firm's variable cost ratio is 0.75 (i.e., variable costs are 75 percent of sales) .When converting from annual to daily data or vice versa, assume there are 365 days per year.Determine Mace's average collection period.

• A)88 days
• B)44 days
• C)74 days
• D)60 days

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Definitions:

European Conquest

Refers to the period when European countries explored, colonized, and annexed territories around the world, significantly affecting indigenous populations and altering global demographics.

African Slaves

People from Africa who were forcibly transported to the New World and sold into slavery, primarily to work on plantations.

Bacon's Rebellion

A 1676 uprising in colonial Virginia, led by Nathaniel Bacon, against the colony's government for its failure to protect settlers from Native American raids.

Virginia

A state located in the Southeastern and Mid-Atlantic regions of the United States, known for its significant contributions to the formation of the nation's history and government.