1. Jones Company’s sales are $1,000,000 and 80% of those sales are on credit. The beginning and ending accounts receivable balances are $100,000 and $140,000, respectively. What is the company’s...

1. Jones Company’s sales are $1,000,000 and 80% of those sales are on credit. The beginning and ending accounts receivable balances are $100,000 and $140,000, respectively. What is the company’s accounts receivable turnover?

a. 3.33

b. 6.67

c. 8.33

d. 10.67

2. Jones Company’s sales are $1,000,000 and the gross margin percentage is 60%. The beginning and ending inventory balances are $240,000 and $260,000, respectively. What is the inventory turnover?

a. 1.60

b. 2.40

c. 3.40 d. 3.60

3. Based on the information in question 2, what is Jones Company’s average sale period?

a. 152 days

b. 140 days

c. 228 days

d. 175 days

4. Based on the information in questions 1–3, what is Jones Company’s operating cycle?

a. 295 days

b. 283 days

c. 243 days

d. 307 days