Alliance Software Began 2018 with Accounts Receivable of $115,000

question 154

Multiple Choice

Alliance Software began 2018 with accounts receivable of $115,000. All sales are made on credit. Sales and cash collections from customers for the year were $780,000 and $700,000, respectively. Cost of goods sold for the year was $450,000. What was Alliance's receivables turnover ratio (rounded) for 2018?

• A) 4.00.
• B) 5.03.
• C) 2.90.
• D) 6.78.

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