Eddy Corporation had net credit sales during the year of $800,000 and cost of goods sold of $500,000. The balance in receivables at the beginning of the year was $100,000 and at the end of the year was $150,000. What was the receivables turnover ratio? (a) 6.4 (b) 8.0 (c) 5.3 (d) 4.0

Eddy Corporation had net credit sales during the year of $800,000 and cost of goods sold of $500,000. The balance in receivables at the beginning of the year was $100,000 and at the end of the year was $150,000. What was the receivables turnover ratio? (a) 6.4 (b) 8.0 (c) 5.3 (d) 4.0

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 44E: Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note:...

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Question

What was the receivable turnover ratio on these financial accounting question?

Eddy Corporation had net credit sales during the year of
$800,000 and cost of goods sold of $500,000. The balance
in receivables at the beginning of the year was $100,000
and at the end of the year was $150,000. What was the
receivables turnover ratio?
(a) 6.4
(b) 8.0
(c) 5.3
(d) 4.0

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