Powers Company reported Net sales of $1,200,000 and average Accounts Receivable, net of $78,500. The accounts receivable turnover ratio is:
A) 15.3 times.
B) 16.3 times.
C) 14.3 times.
D) 28.6 times.
E) 0.65 times.

Question

Quizplus · Accepted Answer

The accounts receivable turnover ratio is calculated by dividing net sales by average accounts receivable. Thus, $1,200,000 / $78,500 = 15.3 times.

Powers Company Reported Net Sales of $1,200,000 and Average Accounts