Mountain Gear Ltd. began the year with an accounts receivable balance of $180,000 and ended the year with a balance of $210,000. The company's credit sales for the year were $800,000, generating a gross profit of $300,000. Calculate the receivables turnover ratio for the year.

Mountain Gear Ltd. began the year with an accounts receivable balance of $180,000 and ended the year with a balance of $210,000. The company's credit sales for the year were $800,000, generating a gross profit of $300,000. Calculate the receivables turnover ratio for the year.

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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Question

I am looking for help with this financial accounting question using proper accounting standards.

Mountain Gear Ltd. began the year with an
accounts receivable balance of $180,000
and ended the year with a balance of
$210,000. The company's credit sales for
the year were $800,000, generating a gross
profit of $300,000.
Calculate the receivables turnover ratio for
the year.

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