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Question
For the Prince Company, the average age of accounts receivable is 60 days, the average age of accounts payable is 45 days, and the average age of inventory is 72 days. Assume a 360-day year. If Prince's annual sales are $936,000, what is the firm's average accounts receivable balance?
a. $104,000
b. $118,000
c. $156,000
d. $212,000
e. $260,000
Answer
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