Patton Corporation had the following items on its financial statements for two recent years: Line Item Description Year 2 Year 1 Sales $2,500,000 $2,000,000 Cost of merchandise sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Merchandise inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s accounts receivable turnover for Year 2.
Patton Corporation had the following items on its financial statements for two recent years: Line Item Description Year 2 Year 1 Sales $2,500,000 $2,000,000 Cost of merchandise sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Merchandise inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s accounts receivable turnover for Year 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Patton Corporation had the following items on its financial statements for two recent years:
| Line Item Description | Year 2 | Year 1 |
|---|---|---|
| Sales | $2,500,000 | $2,000,000 |
| Cost of merchandise sold | 1,975,000 | 1,600,000 |
| Cash | 500,000 | 475,000 |
| Temporary investments | 150,000 | 150,000 |
| 200,000 | 175,000 | |
| Merchandise inventory | 325,000 | 300,000 |
| Accounts payable | 450,000 | 400,000 |
Based on these data, calculate Patton Corporation’s accounts receivable turnover for Year 2.
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