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

question 122

Multiple Choice

The following balance sheet information was provided by O'Connor Company: $\begin{array}{l}\begin{array}{|l}\hline \text { Assets}\\\hline \text { Cash}\\\hline \text { Accounts receivable}\\\hline \text { Inventory}\\\hline\end{array}\begin{array}{r|}\hline 2014 \\\hline \$ \quad 4,000 \\\hline 15,000 \\\hline \$ \quad 35,000\\\hline \end{array}\begin{array}{r|}\hline 2013 \\\hline \$ \quad2,000 \\\hline 12,000 \\\hline \$ \quad 38,000\\\hline \end{array}\end{array}$ Assuming that net credit sales for Year 2 totaled $270,000,what is the company's most recent accounts receivable turnover?

• A) 18 times
• B) 20 times
• C) 22.5 times
• D) 7.7 times

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Definitions:

Somatoform

A category of mental disorders characterized by physical symptoms that suggest illness or injury, but cannot be fully explained by a medical condition.

Physician

A professional who practices medicine, which involves promoting, maintaining or restoring health through the study, diagnosis, prognosis, and treatment of disease, injury, and other physical and mental impairments.

Physical Symptoms

Observable or tangible signs of a condition or disease, such as pain, fever, or a rash, in contrast to psychological symptoms.

Conversion Disorder

A mental condition in which a person experiences neurological symptoms, such as blindness or paralysis, without a physical cause, believed to result from psychological stress or conflict.