question 11
Multiple Choice
Reference: 13-07
Financial statements for Orantes Company appear below:
Orantes Company
Balance Sheet
December 31, 20X6 and 20X5
(dollars in thousands) Current assets: Cash and marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Noncurrent assets: Plant & equipment, net Total assets Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Noncurrent liabilities: Bonds payable Total liabilities Shareholders’ equity: Preferred shares, $10 par, 10% Common shares, $10 par Additional paid-in capital–common shares 20X6$120180130504802,010$2,490$1203017032027059012020027020X5$100160130504401,970$2,410$12040170330300630120200270 Orantes Company
Income Statement
For the Year Ended December 31, 20X6 (dollars in thousands) Sales (all on account) Cost of goods sold Gross margin Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $2,5101,75076030046030430129$301 Dividends during 20X6 totalled $181 thousand, of which $12 thousand were preferred dividends. The market price of a share of common stock on December 31, 20X6 was $280.
-Frabine Company had $150,000 in sales on account last year. receivable balance was $14,000 and the ending accounts receivable balance was
$18,000. The company's accounts receivable turnover was closest to:
Definitions: