The Following Balance Sheet Information Was Provided by O'Connor Company

question 90

Multiple Choice

The following balance sheet information was provided by O'Connor Company: $\begin{array}{lrr}\text { Assets } & \text { Year 2 } & \text { Year 1 } \\\text { Cash } & \$ 3,600 & \$ 2,600 \\\text { Accounts receivable } & \$ 8,600 & \$ 6,600 \\\text { Inventory } & \$ 36,000 & \$ 37,000\end{array}$ Assuming that net credit sales for Year 2 totaled $161,000, what is the company's most recent accounts receivable turnover?

• A) 18.72 times
• B) 10.59 times
• C) 24.39 times
• D) 21.18 times

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Definitions:

Reserve Requirement

The minimum amount of reserves that banks must hold against deposits, as mandated by central banking authorities.

Money Supply

The all-encompassing amount of economic monetary assets at a designated time.

Reserve Requirements

Central bank regulations setting the minimum amount of reserves that must be held by a commercial bank.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the Federal Reserve's discount window.