Powers Company reported Net sales of 1350000 and average Acc

Powers Company reported Net sales of $1,350,000 and average Accounts Receivable, net of $63,500. The accounts receivable turnover ratio is:

Solution

Answer :

Given that

Net sales = $1,350,000

average Accounts Receivable = $63,500

Then receivable turnover ratio = Net sales / Average accounts receivable

= 1,350,000 / 63,500

= 21. 3

Therefore, the accounts receivable turnover ratio is 21.3