The Following Information Is Available for Compton Company The Receivables Turnover Ratio for 2013 Is
A)1

question 95

Multiple Choice

The following information is available for Compton Company: $\begin{array}{lrr}&2013&2012\\\text { Accounts receivable } & \$ 460,000 & \$ 500,000 \\\text { Inventory } & 280,000 & 320,000 \\\text { Net credit sales } & 2,470,000 & 1,400,000 \\\text { Cost of goods sold } & 1,860,000 & 1,060,000 \\\text { Net income } & 300,000 & 170,000\end{array}$ The receivables turnover ratio for 2013 is

• A)1.6 times.
• B)5.4 times.
• C)5.1 times.
• D)3.9 times.

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Definitions:

Sales Tax

A tax imposed by governments on the sale of goods and services, typically a percentage of the retail price.

Low-Income

Referring to individuals or families that earn significantly less than the average income level, often qualifying for various forms of government assistance.

Positive Economics

Real-world economics that focuses on describing, analyzing, and explaining economic phenomena as it actually is, not as it should be.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one economic variable from the influence of others.