Determine the accounts receivable turnover

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Question: 1. Leveraging implies that a company

a. has a high current ratio.

b. has a high earnings per share.

c. contains equity financing.

d. contains debt financing.

2. The following information is available for Taylor Company: Which of the following statements is correct?

a. The price-earnings ratio is 5.0% and a share of common stock was selling for 5.0% more than the amount of earnings per share at the end of 2012.

b. The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of 2012.

c. The market price per share and the earnings per share are not statistically related to each other.

d. The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of 2012.

3. Which one of the following is not a characteristic generally evaluated in ratio analysis?

a. Liquidity

b. Profitability

c. Solvency

d. Marketability

4. Company reports the following: Net sales $1,368,750 Average accounts receivable (net) $109,500 Round your answers to one decimal place.

a. Determine the accounts receivable turnover.

b. Determine the number of days' sales in receivables.

Reference no: EM131884568

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