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31 July, 22:18

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?

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  1. 31 July, 23:10
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    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.
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