Refer to the Following Selected Financial Information from McCormik,LLC A)862
B)8

question 151

Multiple Choice

Refer to the following selected financial information from McCormik,LLC.Compute the company's accounts receivable turnover for Year 2. $$\begin{array} { l r r } & { \text { Year 2 } } & \text { Year 1 } \\\text { Cash } & \$37,500 & \$ 36,850 \\\text { Short-term irvestrnents }& 90,000 & 90,000 \\\text { Accounts receivable, net } & 85,500 & 86,250 \\\text { Merchardise irventory } & 121,00 0 & 117,000 \\\text { Prepaid experses } & 12,100 & 13,500 \\\text { Plart assets } & 388,000 & 392,000 \\\text { Accounts payable } & 113,40 0 & 111,750 \\\text { Net sales } & 711,000 & 706,000 \\\text { Cost of goods sold }& 390,000 & 385,500\end{array}$$

• A)8.62.
• B)8.28.
• C)8.94.
• D)5.78.
• E)7.90.

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Definitions:

Saving

The act of setting aside a portion of current income for future use, either by holding the funds in cash or investing them.

Disposable Income

Spendable and savable funds available to households after the deduction of income taxes.

Consumption

The act of using goods and services to satisfy needs and desires, often considered a primary component of an economy's activity.

Disposable Income

The funds left for households to manage spending and saving after income tax calculations.