Table 3.2
Dana Dairy Products Key Ratios Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010 Balance Sheet
Dana Dairy Products
December 31, 2010
-The average collection period for Dana Dairy Products in 2010 was (See Table 3.2)
A) 32.5 days.
B) 11.8 days.
C) 25.3 days.
D) 35.9 days.

Question

Table 3.2
Dana Dairy Products Key Ratios  Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010  Balance Sheet
Dana Dairy Products
December 31, 2010 
-The average collection period for Dana Dairy Products in 2010 was (See Table 3.2)
A) 32.5 days. 
B) 11.8 days. 
C) 25.3 days. 
D) 35.9 days.

Quizplus · Accepted Answer

The average collection period is calculated by dividing accounts receivable by daily credit sales. The correct calculation based on the provided data results in 32.5 days.

Table 3.2 Dana Dairy Products Key Ratios Income Statement