Lisa Inc.'s balance sheet appears below:
The company's sales for the year were $300,000, its cost of goods sold was $220,000, and its net income was $35,000. All sales were on credit. Dividends paid on preferred shares for the year were $5,000.

-Lisa Inc.'s accounts receivableturnover for Year 2 was closest to which of the following?
A) 4.9 times.
B) 5.9 times.
C) 6.7 times.
D) 8.0 times.

Question

Lisa Inc.'s balance sheet appears below:
The company's sales for the year were $300,000, its cost of goods sold was $220,000, and its net income was $35,000. All sales were on credit. Dividends paid on preferred shares for the year were $5,000.

-Lisa Inc.'s accounts receivableturnover for Year 2 was closest to which of the following?
A) 4.9 times. 
B) 5.9 times. 
C) 6.7 times. 
D) 8.0 times.

Quizplus · Accepted Answer

The Answer of  Lisa Inc.'s balance sheet appears below:
The company's sales for the year were $300,000, its cost of goods sold was $220,000, and its net income was $35,000. All sales were on credit. Dividends paid on preferred shares for the year were $5,000.

-Lisa Inc.'s accounts receivableturnover for Year 2 was closest to which of the following?
A) 4.9 times. 
B) 5.9 times. 
C) 6.7 times. 
D) 8.0 times.

Lisa Inc.'s Balance Sheet Appears Below