A company reports the following: Sales $1,460,000 Average accounts receivable (net) 100,000 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover b. Number of days' sales in receivables days
A company reports the following: Sales $1,460,000 Average accounts receivable (net) 100,000 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover b. Number of days' sales in receivables days
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 8PB: The following select financial statement information from Vortex Computing. Compute the accounts...
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![Accounts Receivable Analysis
A company reports the following:
Sales
$1,460,000
Average accounts receivable (net)
100,000
Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables.
Round interim calculations to the nearest dollar and final answers to one decimal
place. Assume a 365-day year.
a. Accounts receivable turnover
b. Number of days' sales in receivables
days](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa3d89b44-8b2a-4709-913e-4641a3a4a35c%2F03f708d8-926b-42e1-a259-768613c6e519%2Ftd2oofc_processed.png&w=3840&q=75)
Transcribed Image Text:Accounts Receivable Analysis
A company reports the following:
Sales
$1,460,000
Average accounts receivable (net)
100,000
Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables.
Round interim calculations to the nearest dollar and final answers to one decimal
place. Assume a 365-day year.
a. Accounts receivable turnover
b. Number of days' sales in receivables
days
Expert Solution
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Step 1: Introduction
Accounts receivable turnover ratio indicates how many times a firs is able to collects its receivable during the accounting period. It measure the efficiency of the firm in collecting the receivables. The higher the ratio, the better it is for the firm.
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