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

question 17

Multiple Choice

Data from Estrin Corporation's most recent balance sheet and income statement appear below: $$\begin{array} { | l | r | r | } \hline & \text { This Y ear } & \text { Last Year } \\\hline \text { Accounts receivable } & \$ 109,000 & \$ 106,000 \\\hline \text { Inventory } & \$ 139,000 & \$ 158,000 \\\hline \text { Sales on account } & \$ 787,000 & \\\hline \text { Cost of goods sold } & \$ 501,000 & \\\hline\end{array}$$ The average sale period for this year is closest to:

• A)101 days
• B)50 days
• C)108 days
• D)45 days

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Definitions:

Annual Earnings

The total amount of money earned by an individual or entity in one year, often before taxes.

Earnings Ratio

Earnings ratio typically refers to financial metrics that compare various aspects of a company's earnings to other measures, such as its share price in the price-to-earnings ratio.

Discriminate

To make a distinction in favor of or against a person or thing based on the group, class, or category rather than individual merit.