Lisa, Inc.

Statement of Financial Position

December 31, 2010

(in thousands)

                                                          2010       2009

Assets   

Current assets:     

   Cash                                                    $30      $25

   Trading securities                                        20       15

   Accounts receivable (net)                                45       30

   Inventories (at lower of cost of market)                  60       50

   Prepaid items                                            15       20

          Total Current Assets                            $170     $140

Long-term assets:   

  Long-term investments:     

    Available-for-sale investments                        $ 25     $ 20

  Property, plant & equipment:     

    Land (at cost)                                          75       75

    Building (net)                                          80       90

    Equipment (net)                                      95      100

  Intangible assets:     

     Patents (net)                                        35       17

    Goodwill (net)                                        20       13

          Total Long-Term Assets                       $330     $315

          Total Assets                                  $500      $455

Liabilities and Equity    

Current liabilities:      

  Notes payable                                        $ 23     $ 12

  Accounts payable                                       47       28

  Accrued interest                                       $ 15     $15

          Total current liabilities                          $85     $55

Long-term liabilities:        

  Long-term Notes payable 10% due 12/31/2012     $ 10      $ 10

  Bonds payable 12% due 12/31/2015                 15        15

          Total long-term debt                        $ 25       $ 25

          Total liabilities                               $110      $ 80

Shareholders' Equity      

  Preferred stock - 5% cumulative, $100 par,

nonparticipating   authorized, issued and o

utstanding, 1,000 shares                               $100    $100

Common stock - $10 par 20,000 shares authorized, 15,000      

     shares issued and outstanding                    150       150

  Additional paid-in capital - common                  75         75

  Retained earnings                                    65         50

          Total Equity                                 $390      $375

          Total Liabilities & Equity                     $500      $455

Assume net credit sales and cost of goods sold for 2010 were $300,000 and $220,000 respectively. Lisa Inc.'s accounts receivable turnover for 2010 was

A. 5.9 times.

B. 6.7 times.

C. 8.0 times.

D. 4.9 times.