Financial statements for Maraby Corporation appear below:

-Maraby Corporation's accounts receivable turnover for Year 2 was closest to:
A) 13.5
B) 7.8
C) 11.2
D) 9.4

Question

Financial statements for Maraby Corporation appear below:
  
-Maraby Corporation's accounts receivable turnover for Year 2 was closest to:
A) 13.5 
B) 7.8 
C) 11.2 
D) 9.4

Quizplus · Accepted Answer

Accounts receivable turnover = Sales on account ÷ Average accounts receivable balance
= $1,960 ÷ $175* = 11.2 (rounded)
*Average accounts receivable balance = ($190 + $160) ÷ 2 = $175

Financial Statements for Maraby Corporation Appear Below