The Following Balance Sheet Information Was Provided by O'Connor Company

The following balance sheet information was provided by O'Connor Company: $\begin{array}{lrr}\text { Assets } & \text { Year 2 } &{\text { Year 1 }} \\\text { Cash } & \$ 4,000 & \$ 2,000 \\\text { Accounts receivable } & 15,000 & 12,000 \\\text { Inventory } & \$ 35,000 & \$ 38,000\end{array}$
Assuming that net credit sales for Year 2 totaled $270,000, what is the company's most recent accounts receivable turnover?

A) 18 times
B) 20 times
C) 22.5 times
D) 7.7 times

Correct Answer:

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