Question

excerpts from hulkster company's december 31, 2021 and 2020, financial statements are presented below: 2021 2020 accounts receivable $ 60,000 $ 46,000 merchandise inventory 38,000 55,000 net sales 212,000 200,000 cost of goods sold 134,000 118,000 total assets 445,000 415,000 total shareholders' equity 260,000 235,000 net income 47,500 38,000 Hulkster's 2021 receivables turnover is: (Round your answer to 2 decimal places.) Multiple Choice o О 2.23. o 337. o 04.00. c 742.

Answer 1

Answer:

2.00 times

Explanation:

The computation of receivables turnover ratio is shown below:-

Receivable turnover ratio = Net Sales ÷ (Beginning receivables + Ending receivables) ÷ 2

= $212,000 ÷ ($60,000 + $46,000)

= $212,000 ÷ $106,000

= 2.00 times

Therefore, for computing the receivable turnover ratio of 2021 we simply applied the above formula and as per the question the option is not available.