The Following Information Is Available for the Wetzel Company What Is the Average Collection Period in Days for the

question 1

Multiple Choice

The following information is available for the Wetzel Company:
$\begin{array} { l } \text {Net income for the year ended December 31,2014 }&\$127.4\\ \text {Credit sales for the year ended December 31,2014 }&\$1,606.0\\ \text {Retained earnings, December 31,2014 }&150.0\\ \text {Retained earnings, December 31, 2013 }&180.0\\ \text {Total assets, December 31, 2014 }&470.0\\ \text {Total assets, December 31, 2013 }&442.0\\ \text { Total liabilities, December 31, 2014}&240.0\\ \text { Total liabilities, December 31, 2013}&182.0\\ \text {Accounts Receivable, December 31, 2014 }&180.0\\ \text {Accounts Receivable December 31,2013 }&144.0\\\end{array}$

What is the average collection period in days for the year ended December 31,2014?

• A) 5.0
• B) 36.8
• C) 40.9
• D) 77.3

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Definitions:

Chapter 7 Bankruptcy

A type of bankruptcy that involves the liquidation of a debtor's assets to repay creditors, under the U.S. Bankruptcy Code.

Free Assets

Assets that are not encumbered by any liens or claims, available to be used or sold freely by the owner.

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal.

Historical Cost

The original monetary value of an asset or investment, without adjustment for inflation or depreciation, used in accounting to determine financial statements.