Calculate C Co's Receivables Turnover Ratio and the Days' Sales

question 7

Multiple Choice

Calculate C Co's receivables turnover ratio and the days' sales in receivables for 2012.

• A)11.43 times and 31.9 days
• B)11.02 times and 33.1 days
• C)11.15 times and 32.7 days
• D)3.47 times and 105.2 days

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Definitions:

Investment Bankers

Professionals who work for financial institutions, facilitating mergers, acquisitions, and issuing of securities for corporations and governments.

Commercial Bankers

Professionals working in commercial banks that provide a variety of financial services including loans, deposits, and investment products to businesses and individuals.

Credit Raters

Agencies or entities that assess the creditworthiness of issuers of debt securities, determining their ability to make timely interest payments and repay the principal.

Sarbanes-Oxley Act

A U.S. federal law that aimed to protect investors by improving the accuracy and reliability of corporate disclosures.