Financial Statements for March Company Appear Below -March Company's Average Sale Period (Turnover in Days)for Year 2

question 38

Multiple Choice

Financial statements for March Company appear below:

$\begin{array}{|l|r|}\hline&\begin{array}{r}\text { March Company } \\\text { Income Statement }\\\text { For the Year Ended December 31, Year } \\2 \\\text { (dollars in thousands) } \\\end{array} \\\hline \text { Sales (All on Account) } & \$ 1610 \\\hline \text { Costs of Goods Sold } & \$ 1120 \\\hline \text { Gross Margin } & \$ 490 \\\hline \text { Operating Expenses } & \$ 190 \\\hline \text { Net Operating Income } & \$ 300 \\\hline \text { Interest Expense } & \$ 50 \\\hline \text { Net Income before Taxes } & \$ 250 \\\hline \text { Income Taxes (30\%) } & \$ 75 \\\hline \text { Net Income } & \$ 175 \\\hline\end{array}$
-March Company's average sale period (turnover in days) for Year 2 was closest to which of the following?Round your intermediate calculations to 2 decimal places.

• A) 34.0 days.
• B) 35.1 days.
• C) 48.9 days.
• D) 50.5 days.

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Definitions:

Variable Selling Expense

Expenses that change in proportion to sales volume, including fees for commissions and charges for shipping.

Transfer Price

The price at which goods or services are traded between departments or subsidiaries within the same organization.

Selling Division

The segment of a company responsible for selling products or services, often considered in transfer pricing situations.

Transfer Price

The price charged for goods and services sold between departments or subsidiaries of the same company.