Using the Information Provided,what Is the Collection Cycle for the Firm

question 56

Multiple Choice

Using the information provided,what is the collection cycle for the firm? Perfect Purchase Electronics
Selected Income Statement Items,2014
Cash Sales $1,500,000
Credit Sales $7,500,000
Total Sales $9,000,000
COGS $6,000,000
Perfect Purchase Electronics
Selected Balance Sheet Accounts
12/31/2014 12/31/2013 Change
Accounts Receivable $270,000 $240,000 $30,000
Inventory $125,000 $100,000 $25,000
Accounts Payable $110,000 $90,000 $20,000

• A)6.84 days
• B)7.60 days
• C)10.34 days
• D)12.41 days

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Definitions:

Human Interaction

The dynamic, evolving exchange and communication between individuals or groups, influencing and shaping social structures and relationships.

Time-Biased Media

Media that have longevity but whose form prevents their transmission over physical distance (e.g., cave art, hieroglyphics).

Space-Biased Media

Media that can convey messages readily over physical distance.

Harold Innis

A Canadian economist and professor known for his contributions to communication theory and economic history, especially concerning media and resource economies.