Somen to Park Corporation Had Net Credit Sales of $4,060,000

question 174

Multiple Choice

Somen to Park Corporation had net credit sales of $4,060,000 and cost of goods sold of $3,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $650,000 and $750,000, respectively. The accounts receivable turnover was

• A) 6.7 times.
• B) 6.2 times.
• C) 5.8 times.
• D) 6.4 times.

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Definitions:

Breakeven Point

The level of production or sales at which total revenues equal total expenses, with no profit or loss.

Sales Proportion

The ratio of a particular product's sales to the total sales of all products, often used to analyze the performance or popularity of products.

Multiple Products

The strategy or condition of manufacturing or selling a variety of different products, often to diversify risk or meet various consumer demands.

Operating Leverage Factor

A measure showing the degree to which a company can increase operating income by increasing revenue, emphasizing the fixed to variable costs ratio.