What should be the formula in Accounts Receivable Turnover?12 Sales3 Cost of Goods Sold4 EBIT5 Cash6 Accounts Receivable7 Inventory8 Net Fixed Assets9 Accounts Receivable Turnover=B5/B2=B6/B3None of the above=B2/B6=B6/B220174,500,0002,875,000962,50048,250492,150513,7501,148,360

· Ratio analysis used to identify the business performance of the company.· It is used to measure…

Answered: =B5/B2 =B6/B3 None of the above =B2/B6…

Business

Accounting

=B5/B2 =B6/B3 None of the above =B2/B6 =B6/B2

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 5MC

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

What should be the formula in Accounts Receivable Turnover?
1
2 Sales
3 Cost of Goods Sold
4 EBIT
5 Cash
6 Accounts Receivable
7 Inventory
8 Net Fixed Assets
9 Accounts Receivable Turnover
=B5/B2
=B6/B3
None of the above
=B2/B6
=B6/B2
2017
4,500,000
2,875,000
962,500
48,250
492,150
513,750
1,148,360

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