Starwood Corporation has current assets of $200,000,total current liabilities of $750,000 net credit sales of $1,300,000,beginning accounts receivable of $65,000 and ending accounts receivable of $69,000.What is Starwood's accounts receivable turnover?
A)21.8 times
B)19.4 times
C)22.4 times
D)5.8 times

Question

Quizplus · Accepted Answer

Accounts receivable turnover = Net credit sales ÷ [(Beginning accounts receivable + ending accounts receivable)÷ 2]
Accounts receivable turnover = $1,3000,000 ÷ [($65,000 + $69,000)÷ 2] = $1,3000,000 ÷ $67,000 = 19.4 times

Starwood Corporation Has Current Assets of $200,000,total Current Liabilities of $750,000