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:

Objectivity

The principle of being unbiased and impartial, ensuring personal feelings or opinions do not affect the representation of facts.

Dilution

A process of decreasing the concentration of a solute in solution, typically by adding more solvent.

Increased Vigilance

The heightened state of watchfulness and alertness to potential threats or dangers.

Reproductive Success

The transfer of genetic material to subsequent generations, enabling those offspring to further transmit the same genetic information.