A Firm Has an Accounts Receivables Turnover Equal to 33

question 34

Multiple Choice

A firm has an accounts receivables turnover equal to 33.5 days, an average inventory equal to $120,000, and an average accounts payable balance equal to $52,000. What is the firm's receivables collection period? In your computations, assume there are 360 days in a year. 

• A)3.00 days
• B)77.31 days
• C)14.52 days
• D)12.25 days
• E)10.75 days

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Definitions:

Minority Stockholders

Minority stockholders are investors who own a smaller portion of a company's shares and typically do not have control or significant influence over the company's decisions.

American Political Culture

A set of shared values, beliefs, and behaviors that define the relationship between citizens and government in the United States.

Individualism

The principle of being independent and self-reliant, favoring freedom of action for individuals over collective or state control.