Lisa Inc.\'s balance sheet appears below: Lisa Inc. Statement of Financial Posit

Question

Lisa Inc.'s balance sheet appears below:

Lisa Inc.
Statement of Financial Position
December 31
(in thousands)
Year 2 Year 1
Cash $ 28 $ 21
Marketable securities 18 12
Accounts receivable (net) 44 26
Inventories 59 47
Prepaid expenses 13 19
Total current assets 162 125
Land 151 122
Building (net) 75 88
Equipment (net) 138 149
Total long-term assets 364 359
Total assets $526 $484

Accounts payable $ 47 $ 34
Accrued interest 20 20
Short-term notes payable 25 14
Total current liabilities 92 68
Long-term notes payable 11 11
Bonds payable 16 16
Total long-term liabilities 27 27
Total liabilities 119 95
Preferred stock $(100 par value, 8%) 100 100
Common Stock $(10 par value) 160 160
Additional paid-in capital--common stock 79 79
Retained earnings 68 50
Total stockholders’ equity 407 389
Total liabilities & equity $526 $484

The company's sales for the year were $307 thousand, its cost of goods sold was $209 thousand, and its net income was $35 thousand. All sales were on credit. Preferred dividends for the year were $8 thousand.
Lisa Inc.'s accounts receivable turnover for Year 2 was closest to:

Explanation / Answer

Receivable turnover is sales/average receivables so we have 307/((44+26)/2)= 8.77

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.