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

question 49

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. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 45,000 \\\text { Accounts receivable (net) } & 40,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & 210,000 \\\quad \text { Total Assets } & \$ 305,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 50,000 \\\text { Long-term liabilities } & 95,000 \\\text { Stockholders' equity?common } & 160,000 \\\quad \text { Total Liabilities and Stockholders' Equity } & \$ 305,000 \\\\\text { Income Statement }\\\text { Sales } & \$ 110,000 \\\text { Cost of goods sold } & 66,000 \\\text { Gross profit } & 44,000 \\\text { Operating expenses } & 30,000 \\\quad \text { Net income } & \$ 14,000\\\\\text { Number of shares of common stock } & 6,000 \\\text { Market price of common stock } & \$ 20 \\\text { Dividends per share } & .50\end{array}$ What is the accounts receivable turnover for Ortiz?

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

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Definitions:

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brainstem down the back, transmitting neural signals between the brain and the rest of the body.

Sympathetic Nervous System

Part of the autonomic nervous system that activates the body's fight-or-flight response during stressful situations.

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for conserving energy and lowering the heart rate, among other actions, to maintain homeostasis.

Autonomic Nervous System

The part of the nervous system responsible for control of the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.