Financial statements for Oram Company appear below: Dividends during Year 2 totaled $161 thousand, of which $10 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $610.
-Oram Company's accounts receivable turnover for Year 2 was closest to:
A) 22.6
B) 15.8
C) 14.9
D) 10.4

Question

Financial statements for Oram Company appear below:   Dividends during Year 2 totaled $161 thousand, of which $10 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $610.
-Oram Company's accounts receivable turnover for Year 2 was closest to:
A) 22.6 
B) 15.8 
C) 14.9 
D) 10.4

Quizplus · Accepted Answer

The accounts receivable turnover is calculated by dividing net credit sales by the average accounts receivable. Without specific figures, we assume the closest turnover ratio based on typical industry standards and provided options.

Financial Statements for Oram Company Appear Below: Dividends