Question: Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, calculate the firm's accounts receivable turnover ratio. Round the answers to two decimal places.
Balance Sheet December 31, 2015
Cash and marketable securities $187,000
Accounts payable $217,000
Accounts receivable $498,000
Notes payable $51,500
Inventories $799,000
Accrued expenses $58,300
Prepaid expenses $19,300
Total current liabilities $326,800
Total current assets $1,503,300
Long-term debt $215,400
Gross fixed assets $1,978,000
Par value and paid-in-capital $128,000
Less: accumulated depreciation $478,000
Retained Earnings $2,333,100
Net fixed assets $1,500,000
Common Equity 2,461,100
Total assets $3,003,300
Total liabilities and owner's equity $3,003,300 Income Statement, Year of 2015
Net sales (all credit) $5,386,600.00
Less:Cost of goods sold $3,716,754.00
Selling and administrative expenses $329,000.00
Depreciation expense $138,000.00
EBIT $1,202,846.00
Interest expense $39,600.00
Earnings before taxes $1,163,246.00
Income taxes $465,298.40
Net income $697,947.60