Data from Dunshee Corporation's Most Recent Balance Sheet Appear Below

question 279

Multiple Choice

Data from Dunshee Corporation's most recent balance sheet appear below:
$\begin{array}{lrr}&\text { Year 2 } & \text { Year 1 } \\\text { Current assets: }\\\text { Cash}&\$ 130 & \$ 100 \\\text { Accounts receivable, net.}&270 & 290 \\\text {Inventory }&90 & 110 \\\text {Prepaid expenses }&10 & 10\\\text { Total current assets. }&\$500&\$510\\\text { Total current liabilities }&\$230&\$220\end{array}$ Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.
-The average collection period for Year 2 is closest to:

• A) 1.1 days
• B) 0.9 days
• C) 84.3 days
• D) 87.3 days

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Definitions:

Employee Status

The classification of a worker as an employee under law, subject to certain legal rights, duties, and protections.

Degree of Control

The extent to which an individual or entity has the authority or power to manage and direct something or someone.

Details of Work

Specific aspects or tasks associated with a job or project.

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