What is the receivable turnover


Response to the following problem:

Following are the financial statements for Starman Corporation for the year ended December 31, 2009. Assume that all balance sheet amounts represent both average and ending figures.

Starman Corporation Balance Sheet December 31, 2009

Assets:

Cash $ 20,000

Marketable securities 30,000

Accounts receivable 50,000

Inventory 100,000

Long-term receivables 35,000

Property, plant, and equipment 65,000

Total assets $300,000

Liabilities and Stockholders:

Equity Current liabilities $100,000

Long-term liabilities 60,000

Stockholders' equity 140,000

Total liabilities and stockholders' equity $300,000

Starman Corporation Income Statement For the Year Ended December 31, 2009:

Net sales $400,000

Cost of goods sold 240,000

Gross margin $160,000

Operating expenses 40,000

Income before income taxes $120,000

Income taxes expense 30,000

Net income $ 90,000

What is the receivable turnover for this corporation? Round your answer to one decimal place.

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Financial Accounting: What is the receivable turnover
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