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26 December, 12:16

Powers Company reported net sales of $1,250,000, average Accounts Receivable, net of $73,500, and net income of $53,150. The accounts receivable turnover ratio is:

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  1. 26 December, 12:50
    0
    17 times

    Explanation:

    Data provided in the given question : -

    Net Sales = $1,250,000

    Average account Receivable = $73,500

    Net Income = $53,150

    So, the accounts receivable turnover ratio is given below : -

    Accounts receivable turnover ratio = Net sales : Average accounts receivable

    = $1,250,000 : $73,500

    = 17 times

    Hence the net income is ignored for calculating the account receivable turnover ratio.
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