Answered: A company has net sales of $489,600 and…

A company has net sales of $489,600 and average accounts receivable of $40,800. What is its accounts receivable turnover? a. 0.08 c. 1,341.00 e. 111.78 b. 30.41 d. 12.00

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4BE

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Question

A company has net sales of $489,600 and average accounts
receivable of $40,800. What is its accounts receivable turnover?
a. 0.08 c. 1,341.00 e. 111.78
b. 30.41 d. 12.00

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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