-Refer to the Following Selected Financial Information from Marston Company

question 84

Multiple Choice

$$\begin{array} { | l | r | r | } \hline &{ \text { Year 2 } } & { \text { Year 1 } } \\\hline \text { Accounts receivable, net } & 86,500 & 82,750 \\\hline \text { Net sales } & 723,000 & 693,000 \\\hline\end{array}$$
-Refer to the following selected financial information from Marston Company.Compute the company's days' sales uncollected for Year 2.(Use 365 days a year.)

• A) 43.9.
• B) 43.7.
• C) 46.2.
• D) 85.4.
• E) 42.7.

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Definitions:

Going Concern

The assumption that a company will continue its operations in the foreseeable future and has no intention of liquidating its assets.

Cash Flows from Operating Activities

The section of the cash flow statement that shows the cash generated or used by a company's primary business activities.

Property Plant and Equipment

Long-term assets used in the operations of a business, not intended for sale, including land, buildings, and machinery.

Investing Activities

Financial transactions involving the purchase and sale of long-term assets and investments not included in cash equivalents.