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Spirit Corp

question 137

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Spirit Corp.reported net sales (all on credit) of $1,600,000 and cost of goods sold of $1,100,000 for 2014.Its beginning balance of Accounts Receivable was $150,000.The accounts receivable balance decreased by $10,000 during 2014.Rounded to two decimal places,what is Spirit's accounts receivable turnover rate for 2014?


Definitions:

RRSP

Registered Retirement Savings Plan, a Canadian financial vehicle for individuals to save for retirement on a tax-sheltered basis.

Nominal Rate

The advertised or stated interest rate on a loan or investment, not accounting for any fees or compounding of interest.

Effective Rate

The real interest rate on an investment or loan, taking into account the effect of compounding over a given period.

Compounding Interval

The frequency at which interest is added to the principal amount of an investment or loan which can affect the total interest earned or paid.

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