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Anon25 [30]
4 years ago
13

Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. A

ssets Cash and short-term investments $ 40,000 Accounts receivable (net) 25,000 Inventory 20,000 What is the accounts receivable turnover for this company?
Business
1 answer:
STatiana [176]4 years ago
3 0

Answer:

Hie, the question you have provided is <em>missing</em> the Sales figures.

However steps to calculate the accounts receivable turnover are explained below:

Accounts receivable turnover is an activity ratio that shows how <em>effective</em> is the company<em> managing credit extended to debtors</em>.

Accounts receivable turnover = Net Credit Sales / Accounts Receivable

<u>From Our Scenario we have the following</u>

<em>Net Credit Sales = Missing</em>

<em>Accounts Receivable = $25,000</em>

The Ratio is measured in times.

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