JR
Answered
A company reports the following:
Sales..............................................................$720,000
Average accounts receivable (net)................45,000?
Determine the (a) accounts receivable turnover and (b) number of days' sales in receivables. Round your answers to onedecimal place.
On Jul 05, 2024
(a)Accounts Receivable Turnover = Sales/Average Accounts ReceivableAccounts Receivable Turnover = $720,000/$45,000Accounts Receivable Turnover = 16.0
(b)Number of Days' Sales in Receivables = Average Accounts Receivable/Average DailySalesNumber of Days' Sales in Receivables = $45,000/
($720,000/365)Number of Days' Sales in Receivables = 22.8