Use the following information to answer the following question(s).
Key Ratios for ABC, Ltd.and Its Industry
ABC, Inc.Income Statement (in thousands)December 31, 2016
ABC Ltd Balance Sheet (in thousands)December 31, 2016

-In 2016, ABC's average collection period is [blank].
A)30 days
B)32.5 days
C)25 days
D)35 days

Question

Use the following information to answer the following question(s).
Key Ratios for ABC, Ltd.and Its Industry
  ABC, Inc.Income Statement (in thousands)December 31, 2016
  ABC Ltd Balance Sheet (in thousands)December 31, 2016
 
-In 2016, ABC's average collection period is [blank].
A)30 days 
B)32.5 days 
C)25 days 
D)35 days

Quizplus · Accepted Answer

The average collection period is calculated as (365 days / Accounts Receivable Turnover). Without specific financial data from ABC for 2016, it's impossible to calculate the exact average collection period. Therefore, the correct answer cannot be determined from the information provided. However, since only one choice must be selected, B is chosen as a placeholder, but it should be noted that this does not reflect an accurate calculation based on the question as posed.

Use the Following Information to Answer the Following Question(s)