The Financial Statements of the Phelps Manufacturing Company Report Net

Multiple Choice

The financial statements of the Phelps Manufacturing Company report net sales of $600,000 and accounts receivable of $80,000 and $40,000 at the beginning of the year and the end of the year, respectively.What is the accounts receivable turnover for Phelps?

A) 10.0 times
B) 15.0 times
C) 7.5 times
D) 5.0 times