The Following Information Pertains to Ortiz Company What Is the Accounts Receivable Turnover for Ortiz?
A) 1

Multiple Choice

The following information pertains to Ortiz Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 45,000 \\\text { Accounts receivable (net) } & 40,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & 210,000 \\\quad \text { Total Assets } & \$ 305,000 \\\end{array}$


$\begin{array}{lr}\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 50,000 \\\text { Long-term liabilities } & 95,000 \\\text { Stockholders' equity—common } & 160,000 \\\quad \text { Total Liabilities and Stockholders' Equity } & \$ 305,000\end{array}$ $\begin{array}{lr}\text { Income Statement }\\\text { Sales } & \$ 110,000 \\\text { Cost of goods sold } & 66,000 \\\text { Gross profit } & 44,000 \\\text { Operating expenses } & 30,000 \\\quad \text { Net income } & \underline{14,000} \\\\\text { Number of shares of common stock } & 6,000 \\\text { Market price of common stock } & \$ 20 \\\text { Dividends per share } & 50\end{array}$ What is the accounts receivable turnover for Ortiz?

A) 1.3 times
B) 1.1 times
C) 2.8 times
D) 12.7 times