Financial statements for Orange Company appear below: Dividends during Year 2 totaled $156 thousand, of which $18 thousand were preferred dividends.
The market price of a share of common stock on December 31, Year 2 was $100.

-Orange Company's accounts receivable turnover for Year 2 was closest to:
A)15.7
B)11.0
C)17.7
D)12.4

Question

Financial statements for Orange Company appear below:   Dividends during Year 2 totaled $156 thousand, of which $18 thousand were preferred dividends.
The market price of a share of common stock on December 31, Year 2 was $100.

-Orange Company's accounts receivable turnover for Year 2 was closest to:
A)15.7 
B)11.0 
C)17.7 
D)12.4

Quizplus · Accepted Answer

Accounts receivable turnover = Sales on account F1F1F1S1F1F1F10 Average accounts receivable balance
= $2,830 F1F1F1S1F1F1F10 $180* = 15.7
*Average accounts receivable balance = ($180 + $180)F1F1F1S1F1F1F10 2 = $180

Financial Statements for Orange Company Appear Below: Dividends