Excerpts from Stealth Company's December 31, 2021 and 2020, financial statements are presented below: 2021 2020Accounts receivable$29,500$43,000Inventory 32,000 39,000Net sales (all credit) 197,000 194,000Cost of goods sold 125,000 118,000Total assets 426,000 419,000Total stockholders' equity 244,000 227,000Net income 37,000 34,000 Stealth Company's 2021 receivables turnover ratio is: Multiple Choice 4.24 times. 14.44 times. 5.43 times. 6.63 times.

Receivable turnover ratio is calculated by dividing the net credit sales by the average receivable.…

Answered: Excerpts from Stealth Company's…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1E

See similar textbooks

Related questions

Concept explainers

Question

Excerpts from Stealth Company's December 31, 2021 and 2020, financial statements are presented below:

		2021		2020
Accounts receivable	$	29,500	$	43,000
Inventory		32,000		39,000
Net sales (all credit)		197,000		194,000
Cost of goods sold		125,000		118,000
Total assets		426,000		419,000
Total stockholders' equity		244,000		227,000
Net income		37,000		34,000

Stealth Company's 2021 receivables turnover ratio is:

Multiple Choice

4.24 times.
14.44 times.
5.43 times.
6.63 times.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions