Skysong, Inc. had net credit sales during the year of $1090600 and cost of goods sold of $604000. The balance in accounts receiv

Question

2 years ago

10

Skysong, Inc. had net credit sales during the year of $1090600 and cost of goods sold of $604000. The balance in accounts receiv

able at the beginning of the year was $114000 and at the end of the year was $152000. What was the accounts receivable turnover?
A. 10.20
B. 5.00
C. 8.20
D. 6.90

Business

1 answer:

blagie [28] · Answer 1 · 2022-09-22T13:15:37+03:00

Answer:

8.2 times

Explanation:

The first step is to calculate the average receivable

= $114,000+$152,000/2

= $266,000/2

= $133,000

Therefore the accounts receivables turn over can be calculated as follows

= net sales / average receivable

= $1,090,000/$133,000

= 8.2 times

Hence the account receivable turnover is 8.2 times