The following information pertains to Sampson Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
|
Assets |
|
|
Cash and short-term investments |
$ 45,000 |
|
Accounts receivable (net) |
35,000 |
|
Inventory |
20,000 |
|
Property, plant and equipment |
210,000 |
|
Total Assets |
$310,000 |
|
Liabilities and Stockholders’ Equity |
||
|
Current liabilities |
$ 60,000 |
|
|
Long-term liabilities |
90,000 |
|
|
Stockholders’ equity—common |
160,000 |
|
|
Total Liabilities and Stockholders’ Equity |
$310,000 |
|
Income Statement |
|
|
Sales |
$105,000 |
|
Cost of goods sold |
66,000 |
|
Gross profit |
39,000 |
|
Operating expenses |
30,000 |
|
Net income |
$9,000 |
|
Number of shares of common stock |
6,000 |
|
Market price of common stock |
$20 |
|
Dividends per share |
.50 |
What is the receivables turnover for Sampson?
3.0 times
12.9 times
1.5 times
1.1 times