Net Credit Sales for Torro Corporation for 2017 Were $600,000

question 12

Multiple Choice

Net credit sales for Torro Corporation for 2017 were $600,000.Net accounts receivable at the beginning of the year were $125,000 and were $150,000 at the end of the year.What was the days' sales in receivables (round to the nearest day) ?

• A) 94 days
• B) 98 days
• C) 84 days
• D) 75 days

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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or credit, which the lender can seize if the borrower fails to repay the agreed amount.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Net Worth

The value of all assets a person or corporation owns, minus the liabilities they owe; a measure of financial health.

Liabilities

A debt owed by a business to another organization or individual.