A company has provided the following data: Item Accounts This Year Last Year Receivable Sales on Account $95,000 $108,000 $920,000 Cost of Goods Sold $645,000 Compute the accounts receivable turnover ratio for this year.

A company has provided the following data: Item Accounts This Year Last Year Receivable Sales on Account $95,000 $108,000 $920,000 Cost of Goods Sold $645,000 Compute the accounts receivable turnover ratio for this year.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...

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Question

100%

Compute the account receivable turnover

A company has provided the following
data:
Item
Accounts
This Year Last Year
Receivable
Sales on Account
$95,000
$108,000
$920,000
Cost of Goods Sold $645,000
Compute the accounts receivable turnover
ratio for this year.

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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