The 2012,2013,and 2014 Partial Balance Sheets for Ottoman Manufacturing Company

question 84

Multiple Choice

The 2012,2013,and 2014 partial balance sheets for Ottoman Manufacturing Company appear below.
Net credit sales for Ottoman were $126,000 for 2012,$120,000 for 2013 and $114,000 for 2014 while cost of goods sold was $84,000 for 2012,$82,400 for 2013 and $72,500 for 2014.
What is the average collection period for 2014?

• A) 68.6 days
• B) 70.5 days
• C) 74.9 days
• D) 76.8 days

Recognize the transportation methods used for distributing finished goods to consumers.

Understand the classification of products based on consumer behavior and purchasing decisions.

Grasp the strategies employed during different stages of the product life cycle, including promotional and pricing strategies.

Distinguish between direct distribution, the use of marketing intermediaries, and their impacts on manufacturers.

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Definitions:

Equals

Signifies that two quantities or expressions have the same value.

Final Value

Refers to the value of an investment or payment at the end of a specified period, accounting for interest or growth.

Fraction

A mathematical expression that represents the division of one quantity by another.

Value

The financial worth of an asset, service, or company based on revenue, assets, earnings, market cap, and other factors.