The Following Information Pertains to Sampson Company What Is the Receivables Turnover for Sampson?
A)1

question 131

Multiple Choice

The following information pertains to Sampson Company.Assume that all balance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 45,000 \\\text { Accounts receivable (net) } & 35,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & 210,000 \\\quad \text { Total Assets } & \$ 310,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 50,000 \\\text { Long-term liabilities } & 90,000 \\\text { Stockholders' equity-common } & 160,000 \\\quad \text { Total Liabilities and Stockholders' Equity } & \$ 310,000\\\\\text { Income Statement }\\\text { Sales } & \$ 105,000 \\\text { Cost of goods sold } & 66,000 \\\text { Gross profit } & 39,000 \\\text { Operating expenses } & 30,000 \\\quad \text { Net income } & \$ 9,000\\\\\text { Number of shares of common stock } & 6,000 \\\text { Market price of common stock } & \$ 20 \\\text { Dividends per share } & .50\end{array}$ What is the receivables turnover for Sampson?

• A)1.5 times
• B)1.1 times
• C)3.0 times
• D)12.9 times

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Definitions:

Cost Estimates

Predictions or approximations of the expenses associated with a project, task, or purchase, often used in budgeting and planning.

Claim Messages

Communications asserting a right or demand for action or compensation, typically in the context of customer service or insurance.

Positive Manner

An approach or method characterized by optimism, constructiveness, or affirmative attitude.

Replacement

The act of substituting one item or person for another, often to fill a vacancy or to update with something newer or better.