Orca Industries Below are the two most recent ba ance sheets and most recent inc

Question

Orca Industries Below are the two most recent ba ance sheets and most recent income statement for Orca Industries. The company has an e ective tax rate of 35% Balance Sheet 2011 2010 Assets: Cash Accounts Receivable (net) Inventory Long-lived assets Less: Accumulated depreciation $10,000 6,000 6.000 1.500 8000 10,000 2,00011,000 (4.00012.000) 32.000 $26.500 Total assets Liabilities and Stockholders' Equity: Accounts payable Deferred revenues Long-term note payable Less: Discount on note payable Common stock Retained earnings s 5,000 6,000 2,000 10,000 (800) (1,000) 12,000 6,000 4800 3500 532.000 26.500 1,000 10,000 Total labilities and stockholders' equity

Explanation / Answer

Account receivable turnover = Sales/average receivable

Average receivable = (6000+1500/2) = 3750

Account receivable turnover = 42000/3750 = 11.2

so answer is a) 11.2

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