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Given below are comparative statements of financial position (balance sheets) and an income statement for Claret Corporation Cash Claret Corporation Balance Sheets Year 2 December
Given below are comparative statements of financial position (balance sheets) and an income statement for Claret Corporation Cash Claret Corporation Balance Sheets Year 2 December 31 January 1 $ 14,700 $ 14,700 Accounts receivable 45,630 35,900 Inventory 31,600 35,500 Equipment (net) 56,300 65,400 Total $ 148,230 $ 151,500 Accounts payable 25, 100 27,700 Dividends payable 6,900 3,000 Long-term note payable 13,400 13,400 Capital stock, $5 par 71,900 71,900 Retained earnings 30,930 35,500 Total $ 148,230 $ 151,500 Claret Corporation Income Statement For the year ended Year 2 Sales Cost of goods sold Gross profit on sales Operating expenses Operating income Interest expense and income taxes Net income $ 227,900 137,450 $ 90,450 75,778 $ 14,672 8,650 $ 6,022 All sales were made on account. Cash dividends declared during the year totaled $10,592. Claret Corporation's inventory turnover for Year 2 is: Multiple Choice 89.00 days. o 4.35 times. O 3.87 times O 4.10 times
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