Potaw Company Reported the Following Data at the End of 2014

question 23

Multiple Choice

Potaw Company reported the following data at the end of 2014: $\begin{array}{lr}\text { Sales revenue ( } 75 \% \text { on credit) }&\$300,000\\\text { Expenses ( } 26 \% \text { on credit) }&60,000\\\text { Accounts receivable, net at December } 31,2014 \text { (a decrease }\\\text { of } \$ 4,000 \text { during 2014) } & 8,000 \\\text { Total assets } & 200,000 \\\text { Stockholders' equity } & 150,000\end{array}$ What was the accounts receivable turnover ratio?

• A) 30.0
• B) 37.5
• C)36.5
• D)22.5

---

Definitions:

Partner

An individual or entity involved in a business partnership sharing profits, losses, and responsibilities.

Subchapter S Corporation

A form of corporation that meets specific Internal Revenue Code requirements and passes income, losses, deductions, and credits through to shareholders for federal tax purposes.

Alimony

Financial support paid by one ex-spouse to the other after divorce or separation, often mandated by the court.

Tax Ramifications

The effects or consequences that certain financial decisions or business transactions have on an individual's or entity's tax liability.