The Bear Rug Has Sales of $811,000

question 79

Multiple Choice

The Bear Rug has sales of $811,000.The cost of goods sold is equal to 63 percent of sales.The beginning accounts receivable balance is $41,000 and the ending accounts receivable balance is $38,000.How long on average does it take the firm to collect its receivables?

• A)17.26 days
• B)17.78 days
• C)18.58 days
• D)20.44 days
• E)29.77 days

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Definitions:

Market-Based Reform

Changes or improvements to policies or practices that are guided by the principles of free market competition.

Social Regulation

Rules imposed by government to correct market failures and improve the social welfare, often relating to health, safety, and the environment.

Economic Regulation

The imposition of rules by the government, aimed at modifying the natural behavior of the economy to achieve specific outcomes like protecting consumers or ensuring fair market competition.

Overregulation

A situation where excessive rules and regulations impede business operations, innovation, or personal freedoms.