Question 40

1. The following information is available for Compton Company:

   Compton Company

   Compton Company	2012	2011
   Accounts receivable	$ 460,000	$500,000
   Inventory	280,000
   		320,000
   Net credit sales	2,470,000	1,400,000
   Cost of goods sold	1,860,000	1,060,000
   Net income	300,000	170,000

   The receivables turnover ratio for 2012 is

   	A.	5.1 times.
   	B.	3.9 times.
   	C.	1.6 times.
   	D.	5.4 times.