Le Baron Company Has an Operating Cycle of 123 Days

question 45

Multiple Choice

Le Baron Company has an operating cycle of 123 days. The firm's days' sales in inventory is 73 days. How much does the firm have in receivables if it has credit sales of $433,450? Round your final answer to the nearest dollar.

• A) $59,377
• B) $71,252
• C) $47,501
• D) $64,233

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Definitions:

Synergistic Gains

Benefits or added value resulting from the combination or cooperation of two entities, exceeding what they could achieve individually.

Tax Benefits

Financial advantages gained from various deductions, credits, or exemptions that reduce the amount of income subject to tax.

Unused Debt Capacity

The additional amount of borrowable funds a company can obtain without reaching its maximum debt threshold. It's an indicator of additional leverage a company may use in the future.

Synergistic Gains

Refers to the increased value or improved performance resulting from the combination or cooperation of two entities, beyond what they could achieve individually.