The Daisy Company Had Net Credit Sales of $830,000 for the Year.Cash

question 154

Multiple Choice

The Daisy Company had net credit sales of $830,000 for the year.Cash sales for the year were $1,120,000.Its receivables at the beginning of the year were $47,000 and at the end of the year they had increased to $82,000.The Daisy Company has credit terms of net 30 days.Compute the days' sales in receivables and evaluate the ratio as strong or weak.(Round all calculations to the nearest dollar or whole day.)

• A)Days' sales in receivables 28 days; strong
• B)Days' sales in receivables 28 days; weak
• C)Days' sales in receivables 12 days; strong
• D)Days' sales in receivables 12 days; weak

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Definitions:

Reduce Hostility

Efforts or techniques aimed at decreasing tension and antagonism between parties in a conflict or negotiation.

Facilitative ADR

A form of alternative dispute resolution where a neutral third party helps disputing parties find a mutually acceptable solution.

Difference Splitting

A negotiation method where the parties involved agree to divide the disputed amount or difference equally or in a mutually acceptable manner.

Hard-Line Position

A firm and uncompromising stance taken during negotiations or disputes, where little to no concession is offered.