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Your company has net sales of $468,300 and average net receivables of $111,500 for the year. Which of the following statements is correct? (Round all calculations to one decimal place.) (a) The receivables turnover ratio is 4.2 and the days-to-collect is 0.01. (b) The receivables turnover ratio is 0.2 and the days-to-collect is 1,520. (c) The receivables turnover ratio is 4.2 and the days-to-collect is 86.9. (d) The receivables turnover ratio is 0.2 and the days-to-collect is 87.6.

Your company has net sales of $468,300 and average net receivables of $111,500 for the year. Which of the following statements is correct? (Round all calculations to one decimal place.) (a) The receivables turnover ratio is 4.2 and the days-to-collect is 0.01. (b) The receivables turnover ratio is 0.2 and the days-to-collect is 1,520. (c) The receivables turnover ratio is 4.2 and the days-to-collect is 86.9. (d) The receivables turnover ratio is 0.2 and the days-to-collect is 87.6.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Your company has net sales of $468,300 and average net receivables of $111,500 for the year. Which of the following statements is correct? (Round all calculations to one decimal place.) (a) The receivables turnover ratio is 4.2 and the days-to-collect is 0.01. (b) The receivables turnover ratio is 0.2 and the days-to-collect is 1,520. (c) The receivables turnover ratio is 4.2 and the days-to-collect is 86.9. (d) The receivables turnover ratio is 0.2 and the days-to-collect is 87.6.
Transcribed Image Text:Your company has net sales of $468,300 and average net receivables of $111,500 for the year. Which of the following statements is correct? (Round all calculations to one decimal place.) (a) The receivables turnover ratio is 4.2 and the days-to-collect is 0.01. (b) The receivables turnover ratio is 0.2 and the days-to-collect is 1,520. (c) The receivables turnover ratio is 4.2 and the days-to-collect is 86.9. (d) The receivables turnover ratio is 0.2 and the days-to-collect is 87.6.
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