Efficiency Ratio: Jet Ltd Has Net Sales of $712,478 and Accounts

question 1

Multiple Choice

Efficiency ratio: Jet Ltd has net sales of $712,478 and accounts receivables of $167,435. What are the company's accounts receivables turnover and days' sales outstanding?

• A) 0.24 times; 78.5 days
• B) 4.26 times; 85.7 days
• C) 5.2 times; 61.3 days
• D) None of the above

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Definitions:

Total Surplus

The total net gain to society from the creation and utilization of a product or service, expressed as the combined value of consumer surplus and producer surplus.

Positively Sloped

Characterizes a line or curve on a graph that moves upward as one moves from left to right, indicating a direct relationship between two variables.

Negatively Sloped

Describes a downward trend in a graph, indicating an inverse relationship between two variables, such as price and demand.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefit to society from the production and consumption of goods or services.