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A company reports the following:
Sales............................................................$1,200,000
Average accounts receivable (net)...............50,000?
Determine the (a) accounts receivable turnover and (b) number of days' sales in receivables. Round your answers to one decimal place.
On Jun 21, 2024
(a)Accounts Receivable Turnover = Sales/Average Accounts ReceivableAccounts Receivable Turnover = $1,200,000/$50,000Accounts Receivable Turnover = 24.0
(b)Number of Days' Sales in Receivables = Average Accounts Receivable/Average Daily SalesNumber of Days' Sales in Receivables = $50,000/
($1,200,000/365)Number of Days' Sales in Receivables = 15.2