A company has a receivables turnover of 10 times. The average net receivables during the period
are $¥ 400,000,000$. What is the amount of net credit sales for the period?

Question

A company has a receivables turnover of 10 times. The average net receivables during the period
 are $¥ 400,000,000$. What is the amount of net credit sales for the period?

Quizplus · Accepted Answer

The receivables turnover ratio is calculated as Net Credit Sales divided by Average Net Receivables. Given the turnover is 10 times and average net receivables are $¥ 400,000,000$, the net credit sales are $10 \times ¥ 400,000,000 = ¥ 4,000,000,000$.

A Company Has a Receivables Turnover of 10 Times ¥400,000,000¥ 400,000,000¥400,000,000

A Company Has a Receivables Turnover of 10 Times $¥ 400,000,000$