Redwing Company Has the Following Data Current Assets What Is the Average Collection Period in Days for Redwing

question 25

Multiple Choice

Redwing Company has the following data: $\begin{array}{llll}&2X13&2X12&2X11\\\text { Sales (all credit sales) } & \$ 800 & \$ 740 & \$ 675 \\\text { Less Cost of Goods Sold } & \underline{525} & \underline{490} &450\\\text { Gross Profit }& \$ 275 &\$ 250 &\$ 225\\\end{array}$
Current Assets:
$\begin{array} { l l l l } \text { Cash } & \$ 25 & \$ 20 & \$ 15 \\\text { Accounts Receivable } & 90 & 70 & 60 \\\text { Inventery } & 65 & 50 & 40 \\\text { Prepaid Rent } & \underline { 10 } & \underline { 15 } & 5 \\\text { Total Current Assets } & \$ 190 & \$ 155 & \$ 120\end{array}$
What is the average collection period in days for Redwing Company in 2X13? Has the average collection period in days improved or not improved since 2X12?

• A)41.1,improved
• B)36.5,improved
• C)36.5,not improved
• D)8.9,improved
• E)41.1,not improved

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Definitions:

Older Workers

Individuals in the workforce who are typically nearing or beyond the traditional age of retirement.

Younger Workers

Individuals in the workforce who are typically younger in age, often categorized as being in their late teens to early thirties.

Ethical Relativism

The ethical theory that denies the existence of an ultimate ethical system, holding instead that a decision must be determined as ethical on the basis of its own context.

Objective Moral Standards

Principles and values that are considered universally valid and not dependent on individual perspectives or cultural differences.