A Company with Net Sales of $500,000,a Beginning Balance of Net

question 6

Multiple Choice

A company with net sales of $500,000,a beginning balance of net receivables of $80,000,and an ending balance of net receivables of $90,000 has a collection period of:

• A) 197 days
• B) 62 days
• C) 54 days
• D) 6 days

---

Definitions:

Product Variety

The range of different products or services offered by a company to meet various customer needs and preferences.

Distribution Network

A system of warehouses, transport services, and distribution centers that facilitates the movement of products from manufacturers to consumers.

Manufacturer

A company or individual that produces finished goods from raw materials using various processes, tools, and machinery.

Economies Of Scale

The cost advantage achieved by an increase in production, leading to a lower cost per unit.