Prune Juice Corp $\begin{array}{llr} \text { Net sales} &\$1,350,000\\ \text {Net income } &\$240,000\\ \text { Average net receivables } &\$185,000\end{array}$

question 20

Multiple Choice

Prune Juice Corp. reported the following data on their 2020 financial statements: $\begin{array}{llr} \text { Net sales} &\$1,350,000\\ \text {Net income } &\$240,000\\ \text { Average net receivables } &\$185,000\end{array}$
To two decimals, the accounts receivable turnover for 2020 is

• A) 5.63.
• B) 7.30.
• C) 8.59.
• D) 0.14.

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Definitions:

Discount Rate

The discount rate that is employed during discounted cash flow evaluation to ascertain the present valuation of future expected cash flows.

Simple Rate of Return

A financial metric that calculates the gain or loss of an investment over a specific period as a percentage of the investment's initial cost.

Cash Outflows

Payments or expenditures made by a business or individual, resulting in a decrease in cash balance.

Useful Life

The estimated duration of time that an asset is expected to be useful in operations, contributing to the company's income generation.