1. What is the number of day's sales in account receivable for 2017 (assume 365 days per year)?

   		10.1 days
   		43.8 days
   		39.5 days
   		36.5 days

2. Ignore your answer to the question above, if ABC company sells on net 30 credit terms, and its current days sales in accounts receivable is 46 days, which of the following statements is true?

   		ABC's customers are in general, paying their bills according to the credit terms.
   		The company is doing a better than average job of collecting its accounts receivable on time.
   		There is probably room for improvement in the company's ability to collect its accounts receivable on time.
   		There is no correlation between a company's credit terms and the number of days sales in receivables.

ABC Company Partial Balance Sheet December 31, 2017 December 31, 2016 Assets in no particular order): Cash Property, Plant and Equipment Accounts Receivable Inventory Prepaid Rent Long-term Notes Receivable Short-term (temporary) investments 100,000 540,000 120,000 300,000 8,000 150,000 50,000 $120,000 520,000 140,000 260,000 7,500 120,000 60,000 Liabilities in no particular order): Accounts Payable Short-term Notes Payable Wages Payable Long-term Debt Income Tax Payable 120,000 87,700 10,000 300,000 30,000 210,000 10,000 8,500 280,000 25,500 Income Statement For the Year Ended December 31, 2017 $ Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before tax Income tax Net income 1,200,000 700,000 500,000 120,000 60,000 320,000 11,000 309,000 92,700 216,300