Wilson,Inc Calculate Accounts Receivable Turnover Ratio Form 2017

question 130

Multiple Choice

Wilson,Inc.provides the following data: $$\begin{array} { | l | r | r | } \hline & \underline { 2017 }& \underline { 2016 } \\\hline \text { Cash } & \$ 41,000 & \$ 25,000 \\\hline \text { Accounts Receivable, Net } & 128,000 & 62,000 \\\hline \text { Merchandise Inventory } & 71,000 & 50,000 \\\hline \text { Property, Plant, and Equipment, Net } & \underline { 195,000 } & \underline { 120,000 } \\\hline \text { Total Assets } & \$ 435,000 & \$ 257,000 \\\hline\end{array}$$ $$\begin{array} { | l | r | } \hline \text { Net Credit Sales } & \$ 280,000 \\\hline \text { Cost of Goods Sold } & ( 130,000 ) \\\hline \text { Gross Profit } & \$ 150,000 \\\hline\end{array}$$ Calculate accounts receivable turnover ratio form 2017.(Round your answer to two decimal places. )

• A)5.60 times
• B)3.40 times
• C)2.95 times
• D)2.19 times

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Definitions:

Gross Earnings

The total income earned by a company before deductions such as taxes and expenses.

Overtime Pay

Additional compensation paid to employees who work beyond the standard hours set by the company's policy or by law.

FICA Tax Rate

The combined rate for Social Security and Medicare taxes in the United States, paid by both employees and employers.

Payroll Deduction

Amounts withheld from an employee's salary by an employer for taxes, benefits, and other legally permitted or voluntary deductions.