The Following Balance Sheet Information Was Provided by Western Company

question 41

Multiple Choice

The following balance sheet information was provided by Western Company: $\begin{array}{|l|r|r|}\hline \text { Assets } & 2014 & 2013 \\\hline \text { Cash } & \$ 4,000 & \$ 2,000 \\\hline \text { Accounts receivable } & 15,000 & 12,000 \\\hline \text { Inventory } & \$ 35,000 & \$ 38,000 \\\hline\end{array}$ Assuming 2014 net credit sales totaled $270,000, what was the company's average days to collect receivables? (Use 365 days in a year. Do not round your intermediate calculations.)

• A) 18.25 days
• B) 47.31 days
• C) 16.22 days
• D) 20.28 days

---

Definitions:

Break-even Sales

The amount of revenue required to cover total costs, both fixed and variable, with no profit or loss.

Unit Selling Price

The price at which a single unit of a product is offered for sale to customers.

Unit Variable Costs

The cost associated with producing one additional unit of product, including materials, labor, and other variable expenses.

Break-even Point

The financial state in which total costs and total revenues are equal, meaning no net loss or gain is incurred by the business.