A company reports the following:
Sales | $183,960 |
Average accounts receivable (net) | 26,280 |
Determine (a) the accounts receivable turnover and (b) the number of days’ sales in receivables.
Frantic Corporation had $130,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000.
The corporation’s accounts receivable turnover was _____.
Based on the following data for the current year, what is the accounts receivable turnover?
Net sales on account during the year | $400,000 |
Cost of merchandise sold during the year | 300,000 |
Accounts receivable, the beginning of year | 45,000 |
Accounts receivable, end of year | 35,000 |
Inventory, the beginning of year | 90,000 |
Inventory, end of year | 110,000 |
a. 11.4
b. 10
c. 8.9
d. 4