Perfect Purchase Electronics Selected Income Statement Items, 2009

question 45

Multiple Choice

Perfect Purchase Electronics Selected Income Statement Items, 2009
Cash Sales $1,500,000
Credit Sales $7,500,000
Total Sales $9,000,000
COGS $6,000,000
Perfect Purchase Electronics
Selected Balance Sheet Accounts
12/31/2009 12/31/2008 Change
Accounts Receivable $270,000 $240,000 $30,000
Inventory $125,000 $100,000 $25,000
Accounts Payable $110,000 $90,000 $20,000
Using the information provided, what is the collection cycle for the firm?

• A) 6.84 days
• B) 7.60 days
• C) 10.34 days
• D) 12.41 days

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Definitions:

Self-reward

A process of giving oneself a reward to reinforce and encourage positive behavior or the completion of tasks.

Study Habits

Consistent practices or routines that individuals adopt to enhance their learning and understanding of materials, improving their educational outcomes.

Functionalism

A school of thought in psychology that emphasizes the role of mental processes in how individuals adapt to their environment.

Behaviour Purpose

The underlying objective or reason for an individual's actions or behavior.