The Flower Shoppe Has Accounts Receivable of $3,506,inventory of $4,407,sales

question 84

Multiple Choice

The Flower Shoppe has accounts receivable of $3,506,inventory of $4,407,sales of $218,640,and cost of goods sold of $169,290.How many days does it take the firm to sell its inventory and collect the payment on the sale assuming that all sales are on credit?

• A)14.67 days
• B)15.35 days
• C)16.23 days
• D)17.18 days
• E)17.47 days

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Definitions:

Short Run

A period in economics during which some factors of production are fixed, limiting the ability to fully adjust to market changes.

Elasticity of Market Supply

The degree to which the quantity supplied of a good changes in response to a change in price.

Output Expansion

The increase in the production of goods and services in an economy or by a firm, often as a result of increased demand or improved production capabilities.

Period Lengthened

The extension of time allocated for a particular activity, phase, or process.