Question

: If Newton Manufacturers has an accounts receivable turnover of 4.8 times and net sales of $7,812,379, what would its receivables be?

Answer 1

Answer:

$1,627,579

Step-by-step explanation:

Given that

The account receivable turnover is 4.8 times

And, the net sales is $7,812,379

We need to find out the receivable

So as we know that

accounts receivable turnover = net sales ÷ average accounts receivables

Therefore the accounts receivables is

= ($7,812,379 ÷ 4.8)

= $1,627,578.96

= $1,627,579