The Following Balance Sheet Information Was Provided by Western Company

question 36

Multiple Choice

The following balance sheet information was provided by Western Company:
$\begin{array}{lrr}\text { Assets } & \text { Year 2 } & \text { Year 1 } \\\text { Cash } & \$ 4,000 & \$ 2,000 \\\text { Accounts receivable } & 15,000 & 12,000 \\\text { Inventory } & \$ 35,000 & \$ 38,000\end{array}$
Assuming Year 2 net credit sales totaled $270,000,what was the company's average days to collect receivables? (Use 365 days in a year.Do not round your intermediate calculations.)

• A) 18.25 days
• B) 47.31 days
• C) 16.22 days
• D) 20.28 days

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Definitions:

Ovary Wall

The outer layer of an ovary in plants or animals, often involved in protecting and nurturing developing reproductive cells.

Maidenhair Tree

Another name for Ginkgo biloba, a unique species of tree known for its fan-shaped leaves and resilience, often considered a living fossil.

Taproot

A type of root system characterized by a single, large primary root that grows vertically downward, giving rise to smaller lateral roots.

Genus Gnetum

A genus of tropical evergreen trees and shrubs that belong to the gymnosperm group Gnetophyta.