The following information is from the annual financial statements of Raheem Company. 2017 2016 2015 Net sales $ 445,000 $ 376,000 $ 421,000 Accounts receivable, net (year-end) 43,000 40,800 37,500 Compute its accounts receivable turnover for 2016 and 2017.

9.60; 10.62

Explanation:

In 2016:

Average accounts receivables:

= (Beginning accounts receivable + Ending accounts receivable) : 2

= (37,500 + 40,800) : 2

= 39,150

Accounts receivable turnover = Net sales : Average accounts receivables

= $376,000 : 39,150

= 9.60

In 2017:

Average accounts receivables:

= (Beginning accounts receivable + Ending accounts receivable) : 2

= (40,800 + 43,000) : 2

= 41,900

Accounts receivable turnover = Net sales : Average accounts receivables

= $445,000 : 41,900

= 10.62