Use the following to answer questions 36-37: The financial statements of Colter Manufacturing Company report net sales of $400,000 and accounts receivable of $80.000 and $40.000 at the beginning and end of the year, respectively 36. What is the receivables turnover ratio for Colter? A) 6.7 times B) 10 times C) 5 times D) 8 times 37. What is the average collection period for accounts receivable in days? A) 40 times B) 80 times C) 54.7 times D) 50 times 38. A truck was purchased for $120,000 and it was estimated to have a $24,000 salvage value at the end of its useful life. Monthly depreciation expense of $2,000 was recorded using the straight-line method. The annual depreciation rate is A) 20% B) 2% C) 8% D) 25% 39. A company purchased office equipment for $40,000 and estimated a salvage value of $8,000 at the end of its 5-year useful life. The constant percentage to be applied against book value each year if the double-declining-balance method is used is: A) 20% B) 25% C) 40% D) 4% 40. A plant asset cost $144,000 and is estimated to have an $18,000 salvage value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be. A) $12,060 B) $20,250 C) $17,718 D) $13,785 Page 9