TY Importing imports exotic items from Europe to the local specialty stores. The average selling price...

TY Importing imports exotic items from Europe to the local specialty stores. The average selling price is $500. Each month, TY Importing distributes 1000 units from Europe to the local stores. On average, the company has $600,000 in the account receivable and typically pays the European supplier 60 days after buying from the supplier. Assume 30 days a month. Which of the following statements is FALSE?

i. The company receives payment from the buyer 40 days after selling to the buyer.

ii. We need more information to find out the unit purchasing cost of the product.

iii. The average account payable is more than the average account receivable, $600,000.

iv. We need more information to find out the specific value of the average account payable.

A) Answer: i & iii B) Answer: ii & iv C) Answer: ii, & iii D) Answer: i & iv (Please Explain WHY)

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Expert Solution

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

ekkarill92 answered 1 year ago

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