Martin Sales Provides the Following Information

question 98

Multiple Choice

Martin Sales provides the following information:
Net credit sales: $790,000
Beginning net accounts receivable: $43,000
Ending net accounts receivable: $20,000
Calculate the accounts receivable turnover ratio.(Round your answer to the nearest whole number. )

• A)18 times
• B)25 times
• C)40 times
• D)37 times

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Definitions:

Stockholder Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership interest of shareholders.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the extent to which a firm has exceeded the break-even point.

Total Revenues

The total amount of money received by a company from its sales of goods or services before any expenses are subtracted.