1) Which of the following represents the number of shares currently owned by inv
ID: 2515642 • Letter: 1
Question
1)
Which of the following represents the number of shares currently owned by investors?
Select one:
a. Issued Shares
b. Authorized shares.
c. Treasury shares.
d. Outstanding Shares
2)
Tinker Company reported the following data at the end of 2016:
Sales revenue (75% on credit)
$300,000
Expenses (26% on credit)
60,000
Accounts receivable, net at December 31, 2016
8,000
Accounts receivable, net at December 31, 2015
12,000
Total assets
200,000
Stockholders’ equity
150,000
What was the accounts receivable turnover ratio?
Select one:
a. 37.5
b. 22.5
c. 30.0
d. 36.5
Sales revenue (75% on credit)
$300,000
Expenses (26% on credit)
60,000
Accounts receivable, net at December 31, 2016
8,000
Accounts receivable, net at December 31, 2015
12,000
Total assets
200,000
Stockholders’ equity
150,000
Explanation / Answer
1) Which of the following represents the number of shares currently owned by investors : Outstanding Shares.
Option d. Outstanding Shares is correct answer.
2) Accounts Receivable Turnover Ratio = Credit sales / Average accounts receivable
= ($300,000 x 75%) / {($8,000 + $12,000) / 2}
= $225,000 / $10,000 = 22.5
Option b. 22.5 is correct answer.
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