SSS Ltd Has Provided the Following Information from Its Financial

question 33

Multiple Choice

SSS Ltd has provided the following information from its financial statements for the year ended 30 June 2018. $$\begin{array} { l r } \text { Sales (all on credit) } & \$ 2,000,000 \\\text { Gross profit on sales } & 1,000,000 \\\text { Net profit } & 150,000 \\\text { Cost of sales } & 1,000,000 \\\text { Inventory at end of year } & 200,000 \\\text { Accounts receivable at end of year } & 500,000\end{array}$$
-The company trades 365 days per year. The number of times SSS's accounts receivable turned over for 2018 is:

• A)5.0 times.
• B)1.8 times.
• C)3.8 times.
• D)4.0 times.

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Definitions:

Retirement of Notes Payable

The process of paying off or settling a debt obligation represented by promissory notes.

Cash Flows from Operating Activities

The section of a company's cash flow statement that represents the amount of money a company brings in from its regular business activities.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, representing the asset's wear and tear, deterioration, or obsolescence.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments, recorded in the cash flow statement.