Question
34) The following data represent selected information from the comparative income statement and balance sheet for Hot Rolled Corporation for the years ended December 31,
34) The following data represent selected information from the comparative income statement and balance sheet for Hot Rolled Corporation for the years ended December 31, 2020 and 2019:
| 2020 | 2019 |
Cash | $ 10,000 | $ 15,000 |
Net accounts receivable | 30,000 | 25,000 |
Inventory | 43,000 | 40,000 |
Prepaid expenses | 5,000 | 7,000 |
Total current assets | 88,000 | 87,000 |
Total non-current assets | 112,000 | 114,000 |
Total current liabilities | 70,000 | 60,000 |
Total non-current liabilities | 40,000 | 45,000 |
Common shares | 60,000 | 60,000 |
Retained earnings | 30,000 | 36,000 |
Net credit sales | 370,000 | 333,000 |
Cost of goods sold | 150,000 | 160,000 |
Gross margin | 220,000 | 173,000 |
Income from operations | 95,000 | 87,000 |
Interest expense | 8,000 | 8,000 |
Net income | 70,000 | 57,000 |
10,000 shares of common shares have been issued and outstanding since the company was established. They had a market value of $90 per share on December 31, 2019, and they were selling for $91.50 on December 31, 2020.
Refer to the table above. The accounts receivable turnover for Hot Rolled Corporation for the year ended December 31, 2020, was:
A) 13.45
B) 13.32
C) 12.33
D) 12.11
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