Universal Sports Supply began the year with an accounts receivable balance of $120,000 and a year- end balance of $140,000. Credit sales of $620,000 generate a gross profit of $240,000. Calculate the receivables turnover ratio for the year.

Universal Sports Supply began the year with an accounts receivable balance of $120,000 and a year- end balance of $140,000. Credit sales of $620,000 generate a gross profit of $240,000. 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 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Question

general account answer

Universal Sports Supply began the year with an
accounts receivable balance of $120,000 and a year-
end balance of $140,000. Credit sales of $620,000
generate a gross profit of $240,000. Calculate the
receivables turnover ratio for the year.

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