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:

Marginal Revenue

The revenue gain from the sale of an additional good or service unit.

Marginal Revenue

The growth in income arising from the sale of an extra unit of a product or service.

Price Discriminate

The practice of selling the same product or service at different prices to different customers, based on factors such as willingness to pay, market segment, or purchase location.

Demand (D)

The quantity of a particular good or service that consumers are willing and able to purchase at various prices during a certain period of time.