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:

Consolidated Balance Sheet

An aggregated financial statement that shows all assets, liabilities, and equity of a parent company and its subsidiaries.

Control Investment

An investment in which the buyer gains significant influence or control over the operations of the investee.

Acquisition Differential

The Acquisition Differential is the difference between the purchase price of a company and the fair value of its identifiable net assets at the time of acquisition.

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt.