Joseph (43) and Azalea (44) are married with no dependents. They will file separate returns for 2020. Joseph files his return fi
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Answer:
8 times
Explanation:
Financial Statements depicts the financial position of a firm at a particular point of time or specified date. The users of financial statements use various types of analysis to understand or compare the current financial statements of the company to prior years or with those of the competitors.
‘Ratio Analysis’ is used to analyze the performance of a company. It is used to analyze the liquidity, profitability, solvency and operational efficiency of the company.
Given:
Net credit sales = $1,300,000
Beginning accounts receivable = $185,000
Ending accounts receivable = $140,000
Accounts receivable turnover is the ratio of net credit sales to average accounts receivable.
It can be calculated as:
Average accounts receivable =
Average accounts receivable =
Average accounts receivable =
Average accounts receivable = $162,500
Accounts turnover ratio =
Accounts turnover ratio =
Accounts turnover ratio = 8 times