Billing's Pit Corporation Has an Accounts Receivable Turnover Ratio of 3.4

question 94

Multiple Choice

Billing's Pit Corporation has an accounts receivable turnover ratio of 3.4. What is Billing's Pit Corporation's average collection period?

• A) 107 days
• B) 102 days
• C) 73 days
• D) 55 days

---

Definitions:

Sales Growth

The increase in sales over a specific period, indicating the financial health and expansion rate of a company.

Required Return

The least annual profit percentage that attracts firms or individuals to place investments in a specific security or project.

Dividend Yield

A ratio reflecting the yearly dividend payments of a company as a proportion of its stock price.

Stock Price

Stock price is the current market price at which a share of stock can be bought or sold, reflecting the value that the market assigns to a company.