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densk [106]
3 years ago
15

The financial statements of the Tyler Company report net sales of $300,000 and accounts receivable of $50,000 and $10,000 at the

beginning of the year and end of year, respectively. What is the accounts receivable turnover for the Tyler Company?
Mathematics
1 answer:
iragen [17]3 years ago
4 0

Answer:

the accounts receivable turnover for the Tyler Company is 10

Step-by-step explanation:

The company report :

net sales = $300,000

account receivable  = $50,000 and $10,000

to find the accounts receivable turnover, use the following formula:

accounts receivable turnover = net sales : average account receivable

First, we need to calculate the average account receivable of  the company

average accounts receivable = ($50,000+$10,000) : 2

                                              = $60,000 : 2

                                              = $30,000

Then, substitute net sales into the formula

accounts receivable turnover = $300,000 : $30,000

                                              = 10

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