Red company has the following information: net credit sales = $400,000 net income = $100,000 average total assets = $80,000 average accounts receivable = $20,000 what is red's average collection period (rounded to the nearest whole day)?

18 Days

Explanation:

Average collection period denotes the number of days between the day when sales are made and invoice is issued to the day when amounts are received. Average collection period is calculated as follows:

Average collection period = (Average Accounts Receivable balance / Credit Sales) * 365

Average collection period = (20,000 / 400,000) * 365 = 18 days.

Note: Usually companies use 365 days for calculation purposes, however 360 days' year can also be used for calculation purposes.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

b is the correct answer