Wilson, Inc provides the following data

2017 2016
Cash $41,000 $25,000
Accounts Receivable, Net 128,000 62,000
Merchandise Inventory 71,000 50,000
Property, Plant, and Equipment, Net 195,000 120,000
Total Assets $435,000 $257,000

Net Credit Sales $280,000
Cost of Goods Sold (130,000 )
Gross Profit $150,000

Calculate accounts receivable turnover ratio form 2017. (Round your answer to two decimal places.)
A) 5.60 times
B) 3.40 times
C) 2.95 times
D) 2.19 times


C .C)
Accounts receivable turnover ratio = Net credit sales / Average net accounts receivable =
$280,000 / $95,000 = 2.95 times

Business

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