Refer to the Following Selected Financial Information from McCormik, LLC

question 102

Multiple Choice

Refer to the following selected financial information from McCormik, LLC. Compute the company's accounts receivable turnover for Year 2. $\begin{array}{|l|r|r|}\hline & \text { Year 2 } & {\text { Year 1 }} \\\hline \text { Cash } & \$ 37,500 & 36,850 \\\hline \text { Short-term investments } & 90,000 & 90,000 \\\hline \text { Accounts receivable, net } & 85,500 & 86,250 \\\hline \text { Merchandise inventory } & 121,000 & 117,000 \\\hline \text { Prepaid expenses } & 12,100 & 13,500 \\\hline \text { Plant assets } & 388,000 & 392,000 \\\hline \text { Accounts payable } & 113,400 & 111.750 \\\hline \text { Net sales } & 711,000 & 706,000 \\\hline \text { Cost of goods sold } & 390,000 & 385,500 \\\hline\end{array}$

• A)8.28.
• B)8.94.
• C)8.62.
• D)7.90.
• E)5.78.

---

Definitions:

Investment

The purchase of goods that are not consumed today but are used in the future to create wealth.

Google Stock

Equity shares of Alphabet Inc., the parent company of Google, representing ownership in one of the world's leading technology firms.

Exxon Mobil

An American multinational oil and gas corporation, one of the world's largest publicly traded energy providers and chemical manufacturers.

Consumer Goods

Goods produced for present consumption.