Benson Company shows the following data on its 2011 financial statements (use for the rest of the questions ):
|
Accounts receivable, January 1 |
$720,000 |
|
Accounts receivable, December 31 |
9,60,000 |
|
Merchandise inventory, January 1 |
9,00,000 |
|
Merchandise inventory, December 31 |
10,20,000 |
|
Gross sales |
48,00,000 |
|
Sales returns and allowances |
1,80,000 |
|
Net sales |
46,20,000 |
|
Cost of goods sold |
33,60,000 |
|
Income before interest and taxes |
7,20,000 |
|
Interest on bonds |
1,92,000 |
|
Net income |
3,84,000 |
The accounts receivable turnover is:
a. 5.5 times per year.
b. 5.714 times per year.
c. 5 times per year.
d. 6.667 times per year.
The inventory turnover is:
a. 5 times per year.
b. 4.8125 times per year.
c. 3.5 times per year.
d. 4 times per year.
The times interest earned ratio is:
a. 4.75 times per year.
b. 3.75 times per year.
c. 2 times per year.
d. 3 times per year.