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

Question 146

Multiple Choice

Freiman Corporation's most recent balance sheet and income statement appear below:
Freiman Corporation's most recent balance sheet and income statement appear below: Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) \begin{array}{lr} \text { Sales (all on account) }&\$ 1,310 \\ \text {Cost of goods sold. }&780 \\ \text {Gross margin. }&530 \\ \text {Selling and administrative expense }&359 \\ \text {Net operating income }&171 \\ \text {Interest expense }& 35 \\ \text {Net income before taxes }&136 \\ \text { income taxes (30\%) }& 41 \\ \text {Net income }& 95 \end{array} -The accounts receivable turnover for Year 2 is closest to: A) 5.95 B) 5.70 C) 1.09 D) 0.92 Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
 Sales (all on account) $1,310Cost of goods sold. 780Gross margin. 530Selling and administrative expense 359Net operating income 171Interest expense 35Net income before taxes 136 income taxes (30%) 41Net income 95\begin{array}{lr}\text { Sales (all on account) }&\$ 1,310 \\\text {Cost of goods sold. }&780 \\\text {Gross margin. }&530 \\\text {Selling and administrative expense }&359 \\\text {Net operating income }&171 \\\text {Interest expense }& 35 \\\text {Net income before taxes }&136 \\\text { income taxes (30\%) }& 41 \\\text {Net income }& 95\end{array}
-The accounts receivable turnover for Year 2 is closest to:


A) 5.95
B) 5.70
C) 1.09
D) 0.92

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