During 2013,Columbia Inc

question 12

Multiple Choice

During 2013,Columbia Inc.had beginning accounts receivable of $680,000 and ending accounts receivable of $760,000.Its net sales of $4,500,000 are composed of 20% cash sales and 80% credit sales.Based on this information,what is Columbia's average collection period?

• A)58.4 days
• B)292.0 days
• C)73.0 days
• D)5.0 days
• E)None of the answer choices is correct.

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Definitions:

Compete Effectively

The capability of an organization to successfully challenge other companies within the same market, thereby gaining a competitive advantage.

Stockpiling

The practice of accumulating a large stock of goods or materials, typically to guard against shortages or price increases.

Bullwhip Effect

A phenomenon where small fluctuations in demand at the retail level cause increasingly larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

EDI

Electronic Data Interchange, a computer-to-computer exchange of business documents in a standard electronic format between business partners.