Question

Excerpts from Stealth Company's December 31, 2021 and 2020, financial statements are presented below: 2021 2020 Accounts receivable $ 29,500 $ 45,000 Inventory 31,000 38,000 Net sales (all credit) 194,000 190,000 Cost of goods sold 115,000 112,000 Total assets 430,000 411,000 Total stockholders' equity 244,000 226,000 Net income 37,000 35,000 Stealth Company's 2021 receivables turnover ratio is: Multiple

Answer 1

Answer:

5.20 times

Explanation:

Account receivable $29,500 + $45,000

= $74,500

$74,500 / 2 =

=$37,250

$194,000 / $37,250

= 5.20 times

Therefore Stealth Company's 2021 receivables turnover ratio is: 5.20 times