Question

Recent financial statements of General Mills, Inc. report net sales of $12,442,000,000. Accounts receivable are $912,000,000 at the beginning of the year and $953,000,000 at the end of the year. (a1) Compute General Mills' accounts receivable turnover.

Answer 1

Answer:

13.34

Explanation:

In this question, we are told to compute the account receivable turnover at the end of the year.

To calculate this , we proceed using a mathematical approach;

mathematically;

Accounts receivable turnover = Net Sale / (Average accounts receivable)

From the question, we can identify that the net sale is $12,442,000,000 while the average accounts receivable which is the average of the account receivable at the start of the year and that at the beginning of the year

= $ 12442000000 / (912000000 + 953000000)/2

= $ 12442000000 / 932500000

= 13.34