LKN Company Had Net Credit Sales of $5,005,000 and Cost

question 119

Multiple Choice

LKN Company had net credit sales of $5,005,000 and cost of goods sold of $3,500,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $600,000 and $700,000, respectively. The accounts receivable turnover was

• A) 8.4 times.
• B) 7.7 times.
• C) 3.9 times.
• D) 7.1 times.

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Definitions:

Perennials

Plants that live for more than two years, typically flowering annually after their initial maturity.

Evergreen

A plant that sheds leaves over a long period, so some leaves are always present. Compare with deciduous.

Glycogen

A multibranched polysaccharide of glucose that serves as a form of energy storage in fungi and animals, including humans.

Cellulose

A long-chain polysaccharide composed of glucose units, forming the primary structural component of plant cell walls and providing rigidity and strength.