Multiple Choice
The Daisy Company had net credit sales of $830,000 for the year.Cash sales for the year were $1,120,000.Its receivables at the beginning of the year were $47,000 and at the end of the year they had increased to $82,000.The Daisy Company has credit terms of net 30 days.Compute the days' sales in receivables and evaluate the ratio as strong or weak.(Round all calculations to the nearest dollar or whole day.)
A) Days' sales in receivables 28 days; strong
B) Days' sales in receivables 28 days; weak
C) Days' sales in receivables 12 days; strong
D) Days' sales in receivables 12 days; weak
Correct Answer:
Verified
Correct Answer:
Verified
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