TB MC Qu. 20-78 (Algo) The accounts receivable turnover ratio: The Harrison Bicycle Company The Harrison Bicycle Company had the following operating results for 2021-2022. In addition, the company paid dividends in both 2021 and 2022 of $250,000 per year and made capital expenditures in both years of $230,000 per year. The company's stock price in 2021 was $14.20 and $12.50 in 2022. Also in 2022, the industry average earnings multiple for the bicycle industry was 8 and the free cash flow and sales multiples were 16 and 1.35, respectively. The company is publicly owned and has 1,400,000 shares of outstanding stock at the end of 2022. Balance Sheet, December 31, Cash Accounts Receivable Inventory Total Current Assets Long-lived Assets Total Assets Current Liabilities Long-term Debt Shareholder Equity Total Debt and Equity 2022 2021 $ 271,000 $ 104,000 $ 529,000 $ 404,000 $ 454,000 $ 304,000 $ 1,254,000 1,225,000 $ 2,479,000 $ 504,000 640,000 1,335,000 $ 2,479,000 Income Statement, for year ended December 31, Sales Cost of Sales Gross Margin Operating Expenses Operating Income Taxes Net Income 2022 $ 6,290,000 5,155,000 1,135,000 460,000 675,000 178,000 $ 497,000 2021 $ 812,000 1,120,000 $ 1,932,000 $ 304,000 540,000 1,088,000 $ 1,932,000 $ 5,410,000 4,400,000 1,010,000 540,000 470,000 193,000 $ 277,000