The Following Information Pertains to Ortiz Company What Is the Accounts Receivable Turnover for Ortiz?
A)1

question 151

Multiple Choice

The following information pertains to Ortiz Company.Assume that all balance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 45,000 \\\text { Accounts receivable (net) } & 30,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & 210,000\\\text { Total Assets }&\$305,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 50,000 \\\text { Long-term liabilities } & 95,000 \\\text { Stockholders' equity-common } & 160,000\\\text { Total Liabilities and Stockholders' Equity }&\$305,000\\\\\end{array}$ $\begin{array}{lr}\text { Income Statement }\\\text { Sales } & \$ 120,000 \\\text { Cost of goods sold } & 66,000\\\text { Gross profit } & 54,000 \\\text { Operating expenses } & 30,000\\\text { Net income }&\$14,000\\\\\text { Number of shares of common stock }&6,000 \\\text { Market price of common stock } &\$20\\\text { Dividends per share }&.50\end{array}$ What is the accounts receivable turnover for Ortiz?

• A)1.3 times
• B)1.1 times
• C)2.8 times
• D)12.7 times

---

Definitions:

Chlorofluorocarbons

Synthetic organic compounds once widely used in aerosols and refrigeration, known to deplete the ozone layer and contribute to global warming.

Air Conditioners

Devices designed to regulate the temperature and humidity within a space, contributing to human comfort and preservation of goods.

Fire Extinguishers

Devices designed to suppress fires through the application of a substance such as foam, water, or dry chemical.

Ultraviolet Radiation

A form of electromagnetic radiation that comes from the sun and artificial sources like tanning beds, which can cause skin damage, eye problems, and increase the risk of skin cancer.