Potaw Company reported the following data at the end of 2010: $$\begin{array} { l r }
\text { Sales revenue } ( 75 \% \text { on credit) } & \$ 300,000 \
\text { Expenses ( } 26 \% \text { on credit) } & 60,000 \
\text { Accounts receivable, net at December } 31,2010 \text { (a decrease } & \
\text { of } \$ 4,000 \text { during } 2010 ) & 8,000 \
\text { Total assets } & 200,000 \
\text { Stockholders' equity } & 150,000
\end{array}$$ What was the accounts receivable turnover ratio?
A)30.0
B)37.5
C)36.5
D)22.5

Question

Potaw Company reported the following data at the end of 2010: $$\begin{array} { l r } 
\text { Sales revenue } ( 75 \% \text { on credit) } & \$ 300,000 \
\text { Expenses ( } 26 \% \text { on credit) } & 60,000 \
\text { Accounts receivable, net at December } 31,2010 \text { (a decrease } & \
\text { of } \$ 4,000 \text { during } 2010 ) & 8,000 \
\text { Total assets } & 200,000 \
\text { Stockholders' equity } & 150,000
\end{array}$$ What was the accounts receivable turnover ratio?
A)30.0
B)37.5
C)36.5
D)22.5

Quizplus · Accepted Answer

The Answer of Potaw Company reported the following data at the end of 2010: $$\begin{array} { l r } 
\text { Sales revenue } ( 75 \% \text { on credit) } & \$ 300,000 \
\text { Expenses ( } 26 \% \text { on credit) } & 60,000 \
\text { Accounts receivable, net at December } 31,2010 \text { (a decrease } & \
\text { of } \$ 4,000 \text { during } 2010 ) & 8,000 \
\text { Total assets } & 200,000 \
\text { Stockholders' equity } & 150,000
\end{array}$$ What was the accounts receivable turnover ratio?
A)30.0
B)37.5
C)36.5
D)22.5

Potaw Company Reported the Following Data at the End of 2010