The Following Information Is from the Annual Financial Statements of Nancy

question 59

Multiple Choice

The following information is from the annual financial statements of Nancy Company.
$$\begin{array} { l c c r } & 2013 & 2012 & 2011 \\\text { Net sales } & \$ 3 0 7 , 0 0 0 & \$ 2 3 8 , 0 0 0& \$ 2 8 5 , 0 0 0 \\\text { Accounts receivable, net (year-end) } & 47,900 & 45,700 & 42,400\end{array}$$

What is the accounts receivable turnover ratio for 2012?

• A) 6.41
• B) 4.97
• C) 6.72
• D) 5.40
• E) 5.20

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Definitions:

Policy Premiums

The amounts of money that individuals or organizations pay for insurance policies over a set period.

Administrative Fee

Charges apart from the basic services or goods provided, often included to cover the cost of administrative expenses.

Taft-Hartley Act

A U.S. federal law that restricts the activities and power of labor unions.

Labor-Management Relations Act

A statute that regulates the relations between employers and organized labor, including collective bargaining, strikes, and the rights of union members.