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

Recognize the rights of the parties pertaining to the statute of limitations for filing lawsuits in breach of contract cases.

Understand the seller's options and obligations in case of a breach by the buyer, including completion of goods and resale.

Comprehend the primary objective of the UCC remedies for breach of contract.

Grasp the application and enforcement of liquidated damages clauses and how specific factors influence their validity.

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Definitions:

Doctrine of Mitigation

A legal principle that requires a party suffering loss due to a breach of contract to take reasonable steps to minimize the damage or loss.

Perishable Fruit

Food items that deteriorate quickly and require proper storage conditions to extend their shelf life.

Minimize Damages

Refers to efforts taken to reduce the severity or impact of damages or losses that occur, often in the context of legal disputes or insurance claims.

Specific Performance

A legal remedy whereby a court orders the breaching party in a contract to perform their promised obligations rather than simply providing monetary compensation for failure to perform.