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Last year, Dogwood Company had net sales of $9,690,000 and cost of goods sold of $4,812,000. Dogwood had the following balances:   January 1 December 31 Accounts receivable $725,000 $775,000 Inventory 450,000 425,000 Required: Note: Round answers to one decimal place. Assume 365 days per year. 1.  Calculate the average accounts receivable. $ 2.  Calculate the accounts receivable turnover ratio. times 3.  Calculate the accounts receivable turnover in days. days

Last year, Dogwood Company had net sales of $9,690,000 and cost of goods sold of $4,812,000. Dogwood had the following balances:   January 1 December 31 Accounts receivable $725,000 $775,000 Inventory 450,000 425,000 Required: Note: Round answers to one decimal place. Assume 365 days per year. 1.  Calculate the average accounts receivable. $ 2.  Calculate the accounts receivable turnover ratio. times 3.  Calculate the accounts receivable turnover in days. days

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculating the Average Accounts Receivable, the Accounts Receivable Turnover Ratio, and the Accounts Receivable Turnover in Days

Last year, Dogwood Company had net sales of $9,690,000 and cost of goods sold of $4,812,000. Dogwood had the following balances:

  January 1 December 31
Accounts receivable $725,000 $775,000
Inventory 450,000 425,000

Required:

Note: Round answers to one decimal place. Assume 365 days per year.

1.  Calculate the average accounts receivable.
$

2.  Calculate the accounts receivable turnover ratio.
times

3.  Calculate the accounts receivable turnover in days.
days

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