86.

During the current accounting period, revenue from credit sales is $671,000. The Accounts Receivable balance is $51,480 at the beginning of the period and $52,200 at the end of the period. Which of the following statements is correct?

A.	The receivables turnover ratio is 12.9.

B.	On average, it takes 12.9 days to collect payment from credit customers.

C.	The receivables turnover ratio is 28.3.

D.	On average, the company sells its inventory every 28.3 days.

87.

Kirk Furniture Company had net Accounts Receivable of $750,000 at the beginning of the year and $925,000 at the end of the year. Net Sales Revenue for 2010 was $6,500,000. What is the days to collect from customers?

A.

60.00

B.

42.12

C.

51.94

D.

47.03

88.

Solvency ratio data are primarily concerned with the ability of a company to:

A.	produce profits.

B.	maintain long-term survival and repay its debt.

C.	manage its cash flow.

D.	provide income for stockholders.

89.

Company X has net sales revenue of $780,000, cost of goods sold of $343,200, and all other expenses of $327,600. The gross profit percentage is closest to:

A.

32%.

B.

56%.

C.

86%.

D.

14%.

90.

Use the information above to answer the following question. The gross profit percentage for the current year is closest to:

A.

42%.

B.

13.5%.

C.

57.7%.

D.

21.15%.