Hartzog Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.
-The accounts receivable turnover for Year 2 is closest to:
A)5.19
B)5.40
C)1.08
D)0.92

Question

Hartzog Corporation's most recent balance sheet and income statement appear below:   Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.
-The accounts receivable turnover for Year 2 is closest to:
A)5.19 
B)5.40 
C)1.08 
D)0.92

Quizplus · Accepted Answer

Accounts receivable turnover = Sales on account F1F1F1S1F1F1F10 Average accounts receivable balance
= $1,350 F1F1F1S1F1F1F10 $250* = 5.40
*Average accounts receivable balance = ($260 + $240)F1F1F1S1F1F1F10 2 = $250

Hartzog Corporation's Most Recent Balance Sheet and Income Statement Appear