Guttery Corporation Has Provided the Following Financial Data from Its

question 105

Multiple Choice

Guttery Corporation has provided the following financial data from its balance sheet: Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000. The company's average sale period (turnover in days) for Year 2 is closest to:

• A)65.6 days
• B)226.6 days
• C)43.8 days
• D)70.6 days

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Definitions:

Dollar Sales

The total revenue a company generates expressed in monetary terms, without taking into account the cost of goods sold.

Contribution Margin Ratio

A financial metric used to analyze the profitability of a product, calculated as (Sales - Variable Costs) / Sales.

Target Profit

Pre-determined earnings a company aims to achieve within a specific period.

Units Sold

The total number of product units that have been sold during a specific period.