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1 year ago

If sales increase while there is no change in accounts receivable, the receivables turnover ratio will ______.

1 answer:

4 0

When there is an increase in sales and yet there is no change in accounts receivable, the receivables turnover ratio will <u>Increase</u>.

<h3>What is the receivables turnover ratio?</h3>

The receivables turnover ratio refers to the measure that shows the number of times a company will have to collect money from its receivables in a given period.

If there is an increase in sales and yet the account receivables does not change, this means that there are now more account receivables. The receivables turnover ratio will have to increase to show that the company will need to collect more receivables.

Find out more on the receivables turnover ratio at brainly.com/question/27523896

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4 years ago

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A compensation system.

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3 years ago

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To find the average fixed cost (AFC), we have to sum all fixed costs and divide it by the amount of units produced. Fixed costs are those that don't depend on how much is produced, in this case, rental and labor cost don't depend on output, as you can neither move to a cheaper place nor decrease labor obligations even if the factory had no output (newspapers printed).

$AFC=\frac{\mbox{Fixed costs}}{\mbox{Printed papers}} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{1000000 papers}=1.5\frac{\$}{paper} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{800000 papers}=1.875 \frac{\$}{paper}$

$\mbox{Porcentual difference}=\frac{\mbox{difference between AFC}}{\mbox{original AFC}} \\\\\mbox{Porcentual difference}=\frac{1.875-1.50}{1.50}*100=\frac{0.375}{1.5} *100=25\%$

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4 years ago

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3 years ago