Reference no: EM132550820

Questions -

Q1. Handles Corp. reported net credit sales of $6,500,000 and cost of goods sold of $3,400,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $525,000 and $575,000, respectively. Determine the receivables turnover ratio?

a. 5.9 times

b. 6.2 times

c. 11.3 times

d. 11.8 times

Q2. A successful grocery store would probably have

a. a low inventory turnover.

b. a high inventory turnover.

c. zero profit margin

d. low volume.