Question: Answer the following question based on the data provided in Appendix. Question 1: What is accounts receivable turnover for 2019? (A) 5.38 times (B) 5.23

Answer the following question based on the data provided in Appendix.

Question 1: What is accounts receivable turnover for 2019?

(A) 5.38 times

(B) 5.23 times

(C) 5.21 times

Question 2: What is Days Sales Outstanding (DSO) in 2019?

(A) 70.02 days

(B) 69.75 days

(C) 67.97 days

Appendix:

Balance sheets

Fiscal Year End

(Amounts in millions, except share data)

2019

2018

ASSETS

Current assets:

Cash and cash equivalents

$

184.5

$

140.9

Trade and other accounts receivable net

694.6

692.6

Finance receivables net

530.1

518.5

Contract receivables net

100.7

98.3

Inventories net

760.4

673.8

Prepaid expenses and other assets

110.2

92.8

Total current assets

2,380.5

2,216.9

Note: the company trade and other accounts receivable primarily arise from the sale of tools and diagnostic and equipment products to a broad range of industrial and commercial customers and to company's independent franchise van channel on a non-extended-term basis with payment terms generally ranging from 30 to 120 days. The components of companys trade and other accounts receivable as of 2019 and 2018 year end are as follows:

(Amounts in millions)

2019

2018

Trade and other accounts receivable

$

715.5

$

710.1

Allowances for doubtful accounts

(20.9)

(17.5)

Total trade and other accounts receivable net

$

694.6

$

692.6

Statement of Earnings

(Amounts in millions, except per share data)

2019

2018

Net sales

$

3,730.0

$

3,740.7

Cost of goods sold

(1,886.0)

(1,870.7)

Gross profit

1,844.0

1,870.0

Operating expenses

(1,127.6)

(1,144.0)

Operating earnings before financial services

716.4

726.0

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