LKN Company Had Net Credit Sales of $5,005,000 and Cost

question 119

Multiple Choice

LKN Company had net credit sales of $5,005,000 and cost of goods sold of $3,500,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $600,000 and $700,000, respectively. The accounts receivable turnover was

• A) 8.4 times.
• B) 7.7 times.
• C) 3.9 times.
• D) 7.1 times.

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Definitions:

Subsystems

Subsystems are smaller components of a larger system.

Operations and Service Management

The administration of business practices aimed at ensuring maximum efficiency within a company, specifically in the production of goods and services.

Trade Associations

Organizations founded and funded by businesses operating in a specific industry, aimed at promoting common interests, sharing information, and often influencing public policy.

Competitive Advantage

The ability of a company or business to perform in a way that allows it to outperform its competitors.