The Following Balance Sheet Information Was Provided by O'Connor Company

question 119

Multiple Choice

The following balance sheet information was provided by O'Connor Company: $\begin{array}{|l|r|r|}\hline \text { Assets } & 2014 & 2013 \\\hline \text { Cash } & \$ 4,000 & \$ 2,000 \\\hline \text { Accounts receivable } & 15,000 & 12,000 \\\hline \text { Inventory } & \$ 35,000 & \$ 38,000 \\\hline\end{array}$ Assuming that net credit sales for the year 2014 totaled $270,000, what is the company's most recent accounts receivable turnover?

• A) 18 times
• B) 20 times
• C) 22.5 times
• D) 7.7 times

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Definitions:

Expected Profit

The forecasted gain from an investment or business operation, taking into account the probability of different outcomes.

Souvenirs

Items purchased or acquired during a trip or at an event to serve as a reminder or for personal keepsake.

Product Availability

The extent to which goods are in stock and ready for purchase by customers.

Supply Chain

The network between a company and its suppliers to produce and distribute a specific product to the final buyer, encompassing all stages of processing and shipping.