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:

Question

Business

Andres Grant

21 February, 14:38

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:

+1

Answers (1)

Know the Answer?

Averie Mcdowell · Answer 1

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.