Natcher Corporation's Accounts Receivable at the End of Year 2

question 37

Multiple Choice

Natcher Corporation's accounts receivable at the end of Year 2 was $126,000 and its accounts receivable at the end of Year 1 was $130,000.The company's inventory at the end of Year 2 was $127,000 and its inventory at the end of Year 1 was $120,000.Sales,all on account,amounted to $1,380,000 in Year 2.Cost of goods sold amounted to $800,000 in Year 2.The company's operating cycle for Year 2 is closest to:

• A) 44.7 days
• B) 17.3 days
• C) 62.8 days
• D) 90.2 days

---

Definitions:

Basket of Goods

A fixed set of consumer products and services valued on an annual basis to measure inflation in an economy or specific market.

Government Surveys

Data collection tools used by governments to collect information about populations, economic indicators, public opinions, or conditions within the country.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to monitor inflation.

Consumer Price Index

A benchmark that evaluates the mean change through time in the outlay by urban consumers for a chosen collection of consumer items and services.