Use the following information for questions.
The following data are provided:

Additional information:
Depreciation included in cost of goods sold and operating expenses is $305,000.On May 1, 2011, 15,000 ordinary shares were issued.The preference share are cumulative.The preference dividends were not declared during 2011.
-The receivables turnover for 2011 is

Question

Use the following information for questions.
The following data are provided:
  
Additional information:
Depreciation included in cost of goods sold and operating expenses is $305,000.On May 1, 2011, 15,000 ordinary shares were issued.The preference share are cumulative.The preference dividends were not declared during 2011.
-The receivables turnover for 2011 is

Quizplus · Accepted Answer

The receivables turnover is calculated by dividing net credit sales by average accounts receivable. The average accounts receivable is calculated by adding the beginning and ending accounts receivable and dividing by 2. The net credit sales are given as $3,200 and the average accounts receivable is given as $350. Therefore, the receivables turnover is $3,200 ÷ $350 = 9.14.

Use the Following Information for Questions