Refer to the Following Selected Financial Information from Texas Electronics

question 220

Multiple Choice

Refer to the following selected financial information from Texas Electronics. Compute the company's accounts receivable turnover for Year 2. $\begin{array}{lrr}& \text { Year 2 } & \text { Year 1 } \\\text { Cash } & \$ 37,500 & \$ 36,850 \\\text { Short-term investments } & 90,000 & 90,000 \\\text { Accounts receivable, net } & 85,500 & 86,250 \\\text { Merchandise inventory } & 121,000 & 117,000 \\\text { Prepaid expenses } & 12,100& 13,500\\\text { Plant assets } & 388,000 & 392,000 \\\text { Accounts payable } & 113,400 & 111,750 \\\text { Net sales } & 711,000 & 706,000 \\\text { Cost of goods sold } & 390,000 & 385,500\end{array}$

• A) 8.62.
• B) 8.28.
• C) 8.94.
• D) 5.78.
• E) 7.90.

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Definitions:

Fiduciary Capacity

A status entailing a legal duty of one party to act in the best interest of another, typically in contexts involving trust, such as financial management or guardianship.

Misappropriation

The unauthorized use of another's name, likeness, or property for personal gain, often violating legal rights.

Pretexting

A deceptive practice where an individual lies about their identity or intentions to obtain personal or sensitive information from another.

Fraudulent Means

Actions or practices intended to deceive or trick others, usually for personal gain or to fulfill some other illicit objective.