Natcher Corporation's Accounts Receivable at the End of Year 2

question 37

Multiple Choice

Natcher Corporation's accounts receivable at the end of Year 2 was $126,000 and its accounts receivable at the end of Year 1 was $130,000.The company's inventory at the end of Year 2 was $127,000 and its inventory at the end of Year 1 was $120,000.Sales,all on account,amounted to $1,380,000 in Year 2.Cost of goods sold amounted to $800,000 in Year 2.The company's operating cycle for Year 2 is closest to:

• A) 44.7 days
• B) 17.3 days
• C) 62.8 days
• D) 90.2 days

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Definitions:

Technological Change

The process of innovation and improvement in technology, which often leads to increased efficiency and productivity within an industry or economy.

Unemployment Rates

Unemployment Rates represent the percentage of the labor force that is jobless and actively seeking employment.

Breakthrough

A significant or sudden advance or discovery that contributes to progress in a particular field.

Labor Needed

The amount of workforce or manpower required to complete a task, fulfill a job, or achieve a production goal.