Use the Tables for the Question(s) Below

question 82

Multiple Choice

Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2010-2015
Pro Forma Balance Sheet for Ideko, 2010-2015

-With the proper changes it is believed that Ideko's credit policies will extend a 60 days credit period to accounts receivables. The forecasted accounts receivable for Ideko in 2012 is closest to ________.

• A) $14,525
• B) $16,970
• C) $22,710
• D) $19,690

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Definitions:

Returns to Scale

Refers to the rate at which output increases as inputs are proportionately increased, categorizing into increasing, constant, or decreasing returns.

Carpet Industry

The sector of the economy specialized in the manufacture and sale of carpets and rugs.

Mills

Factories or plants that process and manufacture products from raw materials.

Marginal Returns

The additional output produced as a result of utilizing one more unit of input, which can decrease as more units are added.