Wilson, Inc provides the following data
2017 2016
Cash $41,000 $25,000
Accounts Receivable, Net 128,000 62,000
Merchandise Inventory 71,000 50,000
Property, Plant, and Equipment, Net 195,000 120,000
Total Assets $435,000 $257,000
Net Credit Sales $280,000
Cost of Goods Sold (130,000 )
Gross Profit $150,000
Calculate accounts receivable turnover ratio form 2017. (Round your answer to two decimal places.)
A) 5.60 times
B) 3.40 times
C) 2.95 times
D) 2.19 times
C .C)
Accounts receivable turnover ratio = Net credit sales / Average net accounts receivable =
$280,000 / $95,000 = 2.95 times
You might also like to view...
W, age 17, enters into an installment contract to purchase a five-year-old-car fro S, an adult. From a legal point of view, the contract is:
A. void B. voidable by W only C. voidable by S only D. voidable by either S or W
Which encryption method does MS-CHAP use?
A) Symmetric key encryption B) Public key encryption C) Both A and B D) Neither A nor B