Polaris Industries Is Forecasting Its Financial Statements for Year 6

question 28

Multiple Choice

Polaris Industries is forecasting its financial statements for Year 6.Selected financial information for Year 5 is provided in the table.What is the interest expense for Polaris Industries in Year 6? (Assume that Polaris Industries average cost of debt is 11.76%.)
Selected Financial Information
Polaris Industries Inc.($ '000)

• A) $2,117
• B) $2,347
• C) $3,114
• D) $4,139
• E) $4,234

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how many times a company collects its average accounts receivable in a period, indicating the efficiency of extending credit and collecting debts.

Average Accounts Receivable

The average amount of money owed to a company by its customers for goods or services provided on credit over a specified period.

Inventory Turnover Ratio

A measure of how quickly a company sells and replaces its stock of goods within a given period.

Cost of Goods Sold

The total cost of materials and labor directly involved in producing goods or services sold during a period.