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A company has an average investment in accounts receivable of $95,000 and an average collection period of 42 days. Assuming a 365-day year, what are the company's annual credit sales? a) $825,000 b) $1,025,000 c) $825,892 d) Cannot be determined

A company has an average investment in accounts receivable of $95,000 and an average collection period of 42 days. Assuming a 365-day year, what are the company's annual credit sales? a) $825,000 b) $1,025,000 c) $825,892 d) Cannot be determined

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 8CDQ
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A company has an average investment in accounts receivable of $95,000 and an average collection period of 42 days. Assuming a 365-day year, what are the company's annual credit sales? a) $825,000 b) $1,025,000 c) $825,892 d) Cannot be determined
Transcribed Image Text:A company has an average investment in accounts receivable of $95,000 and an average collection period of 42 days. Assuming a 365-day year, what are the company's annual credit sales? a) $825,000 b) $1,025,000 c) $825,892 d) Cannot be determined
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