Asked by Brandy Thatcher on Apr 25, 2024
Verified
Steinkraus Corporation has provided the following data: 
Required:
Compute the accounts receivable turnover for this year.Show your work!
Receivable Turnover
A financial metric that measures how effectively a company is collecting on its receivables, calculated as sales divided by the average accounts receivable.
- Assess the operational performance of a company by examining accounts receivable turnover, inventory turnover, and the operating cycle.
Verified Answer
KC
Kayla Cleckley6 days ago
Final Answer :
Accounts receivable turnover = Sales on account ÷ Average accounts receivable*
= $886,000 ÷ $109,500 = 8.09
*Average accounts receivable = ($104,000 + $115,000)÷ 2 = $109,500
= $886,000 ÷ $109,500 = 8.09
*Average accounts receivable = ($104,000 + $115,000)÷ 2 = $109,500
Learning Objectives
- Assess the operational performance of a company by examining accounts receivable turnover, inventory turnover, and the operating cycle.
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