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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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