Data from Kooistra Corporation's Most Recent Balance Sheet Appear Below

question 133

Multiple Choice

Data from Kooistra Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,270 and the cost of goods sold was $770.
-The average collection period for Year 2 is closest to:

• A)0.9 days
• B)38.8 days
• C)40.2 days
• D)1.1 days

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Definitions:

Dollar Sales

The total value of sales measured in monetary terms, without adjusting for changes in volume or price.

Break-even

The point at which total costs equal total revenues, resulting in no profit or loss.

Monthly Unit Sales

The quantity of units of a product sold within a month.

Break-even

The point at which total costs and total revenue are equal, meaning no profit or loss is generated, marking the threshold of profitability.