Bluewave Retailers had net credit sales of $750,000. At the beginning of the year, accounts receivable were $85,000, and at the end of the year, they increased to $110,000. What is the accounts receivable turnover ratio, and how does the increase in receivables affect the company's liquidity?
Bluewave Retailers had net credit sales of $750,000. At the beginning of the year, accounts receivable were $85,000, and at the end of the year, they increased to $110,000. What is the accounts receivable turnover ratio, and how does the increase in receivables affect the company's liquidity?
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 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....
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Transcribed Image Text:Bluewave Retailers had net credit sales of $750,000. At the
beginning of the year, accounts receivable were $85,000, and at
the end of the year, they increased to $110,000. What is the
accounts receivable turnover ratio, and how does the increase in
receivables affect the company's liquidity?
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