Question

Powers Company reported net sales of $1,320,000, average Accounts Receivable, net of $66,500, and net income of $56,125. The accounts receivable turnover ratio is

Answer 1

Answer:

19.85 times

Explanation:

The accounts receivable turnover ratio is Net sales / Average accounts receivables

Given that net sales = $1,320,000

Average accounts receivables = $66,500

Accounts receivable turnover ratio = $1,320,000 / $66,500

= 19.85 times