Your Company Has Net Sales of $468,300 and Average Trade

question 70

Multiple Choice

Your company has net sales of $468,300 and average trade receivables of $111,500 for the year.Which of the following is true?

• A)The receivables turnover ratio is 4.2 and the days-to-collect is 0.012.
• B)The receivables turnover ratio is.24 and the days-to-collect is 1,520.
• C)The receivables turnover ratio is 4.2 and the days-to-collect is 86.9.
• D)The receivables turnover ratio is.24 and the days-to-collect is 87.6.

---

Definitions:

Craft Unions

Labor unions that represent workers in specific trades or crafts, focusing on specific skill sets and professions.

Labor Demand Curves

Illustrates the relationship between the wage rate and the quantity of labor that employers are willing to hire, showcasing how changes in wages can affect employment levels.

Minimum Wage

The lowest legally permissible amount that workers can be paid by employers, usually set by government policy.

Principal-agent Problem

A conflict of interest that arises when one party (the agent) is expected to act in the best interest of another (the principal) but has incentives to act in their own interest.