Question

Question 7 2015 2014 Revenues 2015 Not yet answered $45,000 Points out of 10.00 $21,000 Flag question Assets Current Assets Cash Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable Inventory Prepaid Expenses Total Current Assets $25,000 $5,000 $7,000 $20,000 $30,000 $32,000 $40,000 $159,000 $76,000 $142.000 $22,000 $4,500 $6,000 $18,000 $25,000 $27,000 $36.000 $139,500 Cash Sales NR Sales Credit Card Sales Total Sales Cost of Sales Gross Profit $34,340 $102,660 Direct Operating Expenses Payroll Expenses Other Expenses Total Departmental Expenses Fixed Assets $14,200 $12,780 $26,980 $76,680 Equipment Furniture Building Total Fixed Assets Less Acc. Depreciation Net Fixed Assets $210,000 $80,000 $400.000 $690,000 $42,000 $648,000 Gross Operating Income $200,000 $75,000 $400,000 $675,000 $39,000 $636,000 Total Assets 3807,000 $775.500 Undistributed Operating Expenses Administrative & General Sales & Marketing Property & Maintenance Utilities Total Und. Op. Exp $5,680 $9,940 $5,680 $4,260 $25,560 Income Before Fixed Charges $51,120 Liabilities & Equity Current Liabilities Accounts Payable Notes Payable Unearned Revenue Current Mortgage Payable Accrued Expenses Payable Total Current Liabilities $25,000 $50,000 $25,000 $13,000 $15.000 $128,000 $22,000 $60,000 $20,000 $11,000 $13,600 $126,600 Fixed Charges Property Taxes Insurance Total Fixed Charges $11,360 S8.520 $19,880 EBITDA 531,240 Long Term Liabilities Loan Mortgage Total Long-Term Liabilities $100,000 $300,000 $400.000 $90,000 $310,000 $400,000 Interest Expense Depreciation $3,195 $7,100 Total Liabilities $528,000 $526,600 520,945 Earnings Before Tax Income Tax Net Income $14,662 Owners' Equity Capital Retained Earnings Total Equity $258,000 $21.000 $279.000 $22.900 $10,000 $248.900 Total Equity & Liabilities 3807,000 $775.500 What is the ACCOUNTS RECEIVABLE TURNOVER for 2015? Select one: a. 6.87 b.4.42 c.5.45 d. 3.94

Answer 1

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Answer is highlighted in yellow: Solution: b. 4.42 Answer: Explanation: Accounts Receivable turnover ratio: Formula = Net Credit Sales / Average Accounts Receivable net of allowance (21000) / (5000+4500)/2 4.42 Times