Ask Question
3 October, 10:32

Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 40,000 Accounts receivable (net) 25,000 Inventory 20,000 What is the accounts receivable turnover for this company?

+5
Answers (1)
  1. 3 October, 14:23
    0
    Hie, the question you have provided is missing the Sales figures.

    However steps to calculate the accounts receivable turnover are explained below:

    Accounts receivable turnover is an activity ratio that shows how effective is the company managing credit extended to debtors.

    Accounts receivable turnover = Net Credit Sales / Accounts Receivable

    From Our Scenario we have the following

    Net Credit Sales = Missing

    Accounts Receivable = $25,000

    The Ratio is measured in times.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash ...” 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