Utica Company’s net accounts receivable was $250,000 at December 31, 2016, and $300,000 at December 31, 2017. Net cash sales for 2017 were $100,000. The accounts receivable turnover for 2017 was 5.0, which was computed from net credit sales for the year.

Required: What was Utica's total net sales for 2017?

$1475000

Explanation:

accounts receivables turnover =  --- equation 1

accounts receivables turnover = 5

average  accounts receivable = ( accounts receivable in 2016 + accounts receivable in 2017) / 2

average accounts receivable = = = $275000

back to equation 1

credit sales = accounts receivable turnover * average accounts receivable

                    = 5 * 275000 = $1375000

Utica's total net sales for 2017

credit sales + cash sales

= $1375000 + $100000

= $1475000

the correct answer is:     [c]:     " cyclical unemployment " .