In Year 1,a Company Had Net Sales of $50,000 and Ending

question 22

Multiple Choice

In year 1,a company had net sales of $50,000 and ending accounts receivable of $2,000.In year 2,this company had net sales of $80,000 and ending accounts receivable of $4,000.Use days' sales uncollected to determine which of the following statements is true:

• A)Days' sales uncollected in year 1 is 14.6 days and in year 2 is 18.25 days.This measure indicates that the company's liquidity is declining.
• B)Days' sales uncollected in year 1 is 14.6 days and in year 2 is 18.25 days.This measure indicates that the company's liquidity is improving.
• C)Days' sales uncollected in year 1 is 25 days and in year 2 is 20 days.This measure indicates that the company's liquidity is declining.
• D)Days' sales uncollected in year 1 is 25 days and in year 2 is 20 days.This measure indicates that the company's liquidity is improving.
• E)Days' sales uncollected in year 1 is .04 days and in year 2 is .05 days.This measure indicates that the company's liquidity is improving.

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Definitions:

Population Growth

The increase in the number of individuals in a population, typically measured over a specific time period, influenced by factors like birth rates, death rates, and migration.

Contraception

Involves the methods and devices used to prevent pregnancy as a part of sexual and reproductive health.

Urbanization

The process by which towns and cities are formed and become larger as more people begin living and working in central areas.

North America

A continent located in the northern hemisphere and almost entirely within the western hemisphere, comprising countries such as the United States, Canada, and Mexico.