The Net Accounts Receivable for Andante Company Were $150,000 at the Beginning

question 195

Multiple Choice

The net accounts receivable for Andante Company were $150,000 at the beginning of the most recent year and $190,000 at the end of the year.If the accounts receivable turnover for the year was 8.5,and 15% of total sales were cash sales,then the total sales for the year were:

• A) $1,445,000.
• B) $1,500,000.
• C) $1,700,000.
• D) $1,900,000.

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Definitions:

Compounding

Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.

Time Period

A length or duration of time during which events occur or conditions exist, often used in financial contexts to specify the term of analysis or investment.

Present Value

Present value denotes the current valuation of a prospective sum of money or sequence of cash flows, based on a predefined rate of return.