Heaton Corp

question 75

Multiple Choice

Heaton Corp.sells on terms that allow customers 45 days to pay for merchandise.Its sales last year were $425,000,and its year-end receivables were $60,000.If its DSO is less than the 45-day credit period,then customers are paying on time.Otherwise,they are paying late.By how much are customers paying early or late? Base your answer on this equation: DSO - Credit period = days early or late,and use a 365-day year when calculating the DSO.A positive answer indicates late payments,while a negative answer indicates early payments.

• A)6.20
• B)6.53
• C)6.86
• D)7.20

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Definitions:

Inflation

A general increase in prices and fall in the purchasing value of money over time.

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Mandatory financial charges or levies imposed by governments on individuals or entities to fund government spending and various public expenditures.

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Mean Standard Deviation Graph

A graphical representation that shows the variability of a dataset around its mean value, often used in statistics.