A Firm Is Planning for Next Year and Has Developed

question 66

Multiple Choice

A firm is planning for next year and has developed the following information $\begin{array}{lr}\text {This year's sales }&\$ 7.20 \mathrm{M}\\\text {Next year's sales }&\$ 8.28 \mathrm{M}\\\text { This year's Accounts receivable}&\$ 1.00 \mathrm{M}\\\end{array}$
What receivables balance should the firm plan for next year if management intends to reduce the ACP by ten days? (Calculate using ending balances and a 360-day year) :

• A) $1.15M
• B) $0.80M
• C) $0.92M
• D) none of the above

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Definitions:

Fertilization

The process by which a sperm cell unites with an egg cell, resulting in the formation of a zygote and the initiation of pregnancy.

Tunica Albuginea

Dense, white, collagenous tunic surrounding a structure, such as the capsule around the testis.

Raphe

Central line running over the scrotum from the anus to the root of the penis.

Tunica Adventitia

Outermost fibrous coat of a vessel or an organ that is derived from the surrounding connective tissue.