A Level Accounting (9706)•9706/12/O/N/23
Explanation
Trade Receivables Days Requires Credit Sales Data Steps:
- Trade receivables days measures how long it takes to collect payments from credit sales, using formula: (Trade receivables / Credit sales) × 365.
- Total sales (200,000) include both cash and credit sales, but only credit sales are relevant.
- No breakdown of credit sales versus cash sales is provided.
- Without credit sales figure, the ratio cannot be determined accurately.
Not enough information.
Why the others are wrong:
- A, C, D all assume calculable days, but data is insufficient for any precise option.
Final answer: Not enough information.
Topic: Analysis and communication of accounting information
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