With the Proper Changes It Is Believed That Ideko's Credit

question 42

Multiple Choice

With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2007 is closest to:

• A)$14,525
• B)$16,970
• C)$22,710
• D)$19,690

---

Definitions:

Operating Expenses

The costs associated with the day-to-day functions of a business, excluding direct production costs.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Unit

A single, distinct element that forms part of a system, often used for measuring, standardization, or as part of a greater whole.

Invoice

A notice from the seller to the buyer, detailing the items, their quantities, and the prices settled upon for the goods or services supplied.