Peartree Company Provides the Following Data Additional Information:
• Net Sales (All on Account): $240 000

question 111

Multiple Choice

Peartree Company provides the following data:
$$\begin{array} { | l | r | r | } \hline \text { BALANCE SHEET } & 31 \text { Dec } 2017 & 31 \text { Dec } 2016 \\\hline \text { Cash } & \$ 21000 & \$ 18000 \\\hline \text { Accounts receivable, net } & 31000 & 35000 \\\hline \text { Inventory } & 53000 & 25000 \\\hline \text { PP\&E, net } & 120000 & 90000 \\\hline \text { Total assets } & \$ 225000 & \$ 168000 \\\hline\end{array}$$
Additional information:
• Net sales (all on account) : $240 000
• Cost of sales: $110 000
How much is the accounts receivable turnover for 2017?

• A) 7.07
• B) 1.55
• C) 7.27
• D) 0.76

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Definitions:

Board of Directors

A group of individuals elected by the shareholders of a corporation to oversee and make decisions on behalf of the company.

Consolidated Worksheet

A financial statement that combines the accounting records of a parent company and its subsidiaries, showing the financial results of the entire group as a single entity.

General Journal

A basic accounting record where all day-to-day financial transactions of a company are initially recorded in chronological order.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the appropriate period for an accurate financial statement.