Solved

Given Below Are Comparative Balance Sheets and an Income Statement

question 51

Multiple Choice

Given below are comparative balance sheets and an income statement for Claret Corporation
$\begin{array} { l } \hline \text { Claret Corporation } & \text { Claret Corporation } \\\text { Balance Sheets }-2009 & \text { Income Statement } \\&\text { For the year ended } 2009\\\begin{array}{|l|r|r|}\hline& {\text { Dec.31 }} & \text { Jan. 1 } \\\hline \text { Equipment (net) } & \$ 57,200 & \$ 66,300 \\\hline \text { Inventory } & 32,500 & 36,400 \\\hline \text { Accounts receivable } & 46,800 & 37,700 \\\hline \text { Cash } & 15,600 & 15,600 \\\hline & \$ 152,100 & \$ 156,000 \\\hline \text { Accounts payable } & 26,000 & 28,600 \\\hline & & \\\hline \text { Dividends payable } & 7,800 & 3,900 \\\hline \text { Long-term note payable } & 14,300 & 14,300 \\\hline \text { Share capital, \$5 par } & 72,800 & 72,800 \\\hline \text { Retained earnings } & 31,200 & 36,400 \\\hline & \$ 152,100 & \$ 156,000 \\\hline\end{array}&\begin{array}{|l|r|}\hline \text { Sales } & \$ 228,800 \\\hline \text { Cost of goods sold } & (137,540) \\\hline \text { Gross profit on sales } & \$ 91,260 \\\hline \text { Operating expenses } & (75,868) \\\hline \text { Operating profit } & \$ 15,392 \\\hline \begin{array}{l}\text { Interest expense and } \\\text { income taxes }\end{array} & (9,100) \\\hline \text { Profit } & \$ 6,292 \\\hline\\\hline\\\hline\\\hline\\\hline\\\hline\end{array}\end{array}$
All sales were made on account. Cash dividends declared during the year totaled $11,492
-Refer to the above data. Claret Corporation's accounts receivable turnover for 2009 is:

Definitions:

Federal Court Judges

Officials appointed to preside over cases within the United States federal court system, responsible for applying federal law.

Appointed

Refers to the selection or designation of an individual to hold a position or office, typically by someone in a position of authority.

For Life

A term indicating that something, such as a position, appointment, or penalty, is intended to last for the remainder of one's life.

Appellate Courts

Courts responsible for reviewing and potentially changing the outcomes of decisions made by lower courts.