Ask Question
Yesterday, 22:57

A company reports the following information for the year: Net credit sales $ 120,000 Average accounts receivable 20,000 Cash collections on credit sales 100,000 What is the company's receivables turnover ratio?

+4
Answers (1)
  1. Today, 01:20
    0
    receivable turnover ration = 6

    Explanation:

    credit sales = 120000

    Credit sales = As we know that: Receivables turnover ration = Net credit sales / Average account receivable.

    = 120000 / 20000

    = 6.

    it indicates that company convert its receivable to cash 6 times that year.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company reports the following information for the year: Net credit sales $ 120,000 Average accounts receivable 20,000 Cash collections on ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers