Data from Keniston Corporation's Most Recent Balance Sheet and Income

question 145

Multiple Choice

Data from Keniston Corporation's most recent balance sheet and income statement appear below: $$\begin{array} { | l r | r | } \hline & \text { This Year } & \text { Last Year } \\\hline \text { Accounts receivable } & \$ 128,000 & \$ 114,000 \\\hline \text { Inventory } & \$ 228,000 & \$ 193,000 \\\hline \text { Sales on account } & \$ 813,000 & \\\hline \text { Cost of goods sold } & \$ 597,000 & \\\hline\end{array}$$ The average collection period for this year is closest to:

• A)39.1 days
• B)45.1 days
• C)54.3 days
• D)57.5 days

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Definitions:

EURO

The official currency of the Eurozone, which is used by 19 of the 27 European Union countries.

Official Currency

The legally established money within a country that is used as a medium of exchange, store of value, and unit of account.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country in a given period, a primary indicator of economic health.

GATT Agreement

The General Agreement on Tariffs and Trade; a legal agreement between many countries whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas.