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The 2020, 2021, and 2022 Partial Balance Sheets for Ottoman

question 136

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The 2020, 2021, and 2022 partial balance sheets for Ottoman Manufacturing Company appear below. The 2020, 2021, and 2022 partial balance sheets for Ottoman Manufacturing Company appear below.   Net credit sales for Ottoman were $126,000 for 2020, $120,000 for 2021 and $114,000 for 2022, while cost of goods sold was $84,000 for 2020, $82,400 for 2021 and $72,500 for 2022. What is the accounts receivable turnover for 2021? A) 3.75 times B) 4.61 times C) 5.00 times D) 6.00 times Net credit sales for Ottoman were $126,000 for 2020, $120,000 for 2021 and $114,000 for 2022, while cost of goods sold was $84,000 for 2020, $82,400 for 2021 and $72,500 for 2022. What is the accounts receivable turnover for 2021?


Definitions:

High-volume Products

Items that are produced in large quantities, typically benefiting from economies of scale in manufacturing processes.

Low-volume Products

Items that are produced or sold in relatively small quantities, often requiring specialized manufacturing processes.

Activity-based Costing

A costing method that assigns costs to products or services based on the activities required for their production or delivery.

Activity Cost Pools

A grouping of all costs related to a particular activity, used in activity-based costing to allocate costs more accurately.

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