Selzer Inc

question 79

Multiple Choice

Selzer Inc. sells all of its merchandise on credit. It has a profit margin of 4 percent, days sales outstanding equal to 60 days, receivables of $150,000, total assets of $3 million, and a debt ratio of 0.64. The firm's return on equity (ROE) is:

• A)7.1%.
• B)33.3%.
• C)3.3%.
• D)71.0%.
• E)8.1%.

Identify strategies for sustainable and green computing.

Understand the capabilities and applications of speech recognition software.

Recognize the basics of printing and document styling in computing.

Comprehend the significance of network standards and protocols for successful communication.

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Definitions:

Bad Debt Expense Adjustment

An accounting entry to estimate and record the amount of accounts receivable that is not expected to be collected.

Accounts Receivables Turnover

A financial ratio that measures how often a company collects its average accounts receivable over a period.

Credit Sales

Sales transactions where payment is deferred, allowing customers to purchase goods or services on credit.

Receivables Turnover

A financial metric indicating how efficiently a company uses its assets by calculating the number of times average receivables are collected during a given period.