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:

Promises

Commitments or assurances by one party to another that certain actions will or will not be undertaken.

Covenant Not to Compete

an agreement often found in employment contracts restricting an employee's ability to work in similar employment or start a competitive business within a specific time frame and geographical area after leaving a job.

Employer/Employee Context

The environment and circumstances surrounding the relationship between an employer and their employees, which includes rights, obligations, and expectations.

Restrict

To limit or control the size, amount, or range of something through regulations or conditions.