Jasper Electrical Reported Net Credit Sales of $4,500,000 and Cost

question 71

Multiple Choice

Jasper Electrical reported net credit sales of $4,500,000 and cost of goods sold of $2,700,000 for the year.The Accounts Receivable balances at the beginning and end of the year were $450,000 and $480,000, respectively.The receivables turnover ratio was

• A)5.8 times.
• B)9.4 times.
• C)9.7 times.
• D)10.0 times.

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Definitions:

APS

Acute Psychological Stress, referring to the significant mental stress an individual experiences in response to a perceived threatening situation.

Disposable Income

Financial avenues open to households for spending and saving, post income tax deductions.

MPS

Marginal Propensity to Save, which is the fraction of additional income that a household saves rather than spends on consumption.

Saving

The act of setting aside a portion of current income for future use, typically to achieve financial goals or provide a safety net.