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16 August, 16:44

A company has net sales of $1,630,200 and average accounts receivable of $418,000. What is its accounts receivable turnover for the period?

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  1. 16 August, 17:41
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    An accounts receivable turnover is describes or shows how efficiently is the company or a firm uses its assets. This can be calculated by dividing the net value of sales by the accounts receivable.

    accounts receivable turnover = net sales / accounts receivable

    Substituting,

    accounts receivable turnover = ($1,630,200) / ($418,000)

    = 3.9
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