Alex Rhodes' Net Sales for the Current Period Were $114,000

question 3

Multiple Choice

Alex Rhodes' net sales for the current period were $114,000 and average receivables were $96,250. What is the amount of one day's sales (rounded) ?

• A)$312
• B)$264
• C)$427
• D)$557

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company’s assets, liabilities, and equity at a specific point in time.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Acid-test Ratio

A financial metric used to evaluate a company's short-term liquidity position by comparing its most liquid assets (excluding inventory) to its current liabilities.

Standards for Comparison

Benchmarks or criteria used to evaluate the performance, condition, or quality of something.