Zemrowski Company Has the Following Data Available What Is the Average Collection Period for the Fiscal Year

question 101

Multiple Choice

Zemrowski Company has the following data available:
$\begin{array} { l } \text {Credit Sales for the year ended December 31,2015 }&\$500 \\ \text { Cash Sales for the year ended December 31,2015 }&\$ 400\\ \text {Cost of Goods Sold for the year ended December 31,2015 }&\$290 \\ \text { Total Accounts Receivable, December 31, 2015}&\$200 \\ \text {Total Accounts Receivable, December 31, 2014 }&\$100 \\ \text { Total Inventory, December 31, 2015}&\$200 \\ \text {Total Inventory, December 31, 2014 }&\$250 \\\end{array}$

What is the average collection period for the fiscal year ending December 31,2015?

• A) 110 days
• B) 150 days
• C) 220 days
• D) 283 days

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Definitions:

Hot Stove Rule

A principle in management and discipline that suggests consequences should be immediate, consistent, impersonal, and close to the action of misconduct, akin to touching a hot stove.

Progressive Discipline

The process of tying reprimands to the severity and frequency of misbehaviour.

Incremental Discipline

A method where disciplinary actions progressively increase with each recurrence of undesirable behavior.