Accounts receivable turnover ratio: This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows: A c c o u n t s r e c e i v a b l e t u r n o v e r r a t i o = N e t c r e d i t S a l e s A v e r a g e a c c o u n t s r e c e i v a b l e Days Sales in receivable ratio: This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows: D a y s S a l e s i n r e c e i v a b l e r a t i o = 365 A c c o u n t s r e c e i v a b l e t u r n o v e r r a t i o To Calculate: The Days Sales in receivables for years 1 and 2

Question

Want to see the full answer?

Answer 1

Question

Chapter 6, Problem 6.7.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Please explain the solution to this financial accounting problem using the correct financial principles.

I need answer this financial accounting questions

accounting question

Answer 2

Question

Chapter 6, Problem 6.7.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 6.7.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 6.7.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 6.7.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

Answer 6

Chapter 6, Problem 6.7.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

Answer 7

Chapter 6, Problem 6.7.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 6 - At the end of the fiscal year, before the accounts...Ch. 6 - At the end of the fiscal year, Accounts Receivable...Ch. 6 - Prob. 3SEQ Ch. 6 - The following units of a particular item were...Ch. 6 - Prob. 5SEQ Ch. 6 - Prob. 1CDQ Ch. 6 - What types of transactions give rise to accounts...Ch. 6 - In what section of the balance sheet should a note...Ch. 6 - Give two examples of other receivables.Ch. 6 - Carter’s Hardware is a small hardware store in the...

Solution Summary: The author explains the accounts receivable turnover ratio, which is calculated by dividing Net credit Sales by Average accounts.

Concept explainers

Videos

Want to see the full answer?

Chapter 6 Solutions