Questions
BACC011 Week 6: Practice Quiz
Short answer
Here is some financial statement information for a business. Calculate the accounts receivable turnover ratio for the current year. Prior year Current year Cash 312 258 Accounts receivable 309 126 Short-term investments 392 178 Inventory 275 315 Property, plant and equipment 1,804 1,078 Sales 4,000 7,247 Net profit 2,000 4,222 Share capital 3,500 3,500 Calculate your answer to one decimal place. Do your rounding at the end of the calculation.
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Step-by-Step Analysis
We need to compute the accounts receivable turnover ratio for the current year using the standard formula: Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable.
First, identify the numbers we have: Sales for the year are 7,247. Since the problem asks fo......Login to view full explanationLog in for full answers
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