Refer to the figure above. The firm's receivable turnover is
A) 4.4x
B) 10x
C) 12.5x
D) 14.4x

Name: Refer to the figure above. The firm's receivable turnover is A) 4.4x B) 10x C) 12.5x D) 14.4x
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Question

Quizplus · Accepted Answer

Receivable turnover is calculated as net credit sales divided by average accounts receivable. In this case, net credit sales are $100,000 and the average accounts receivable is $8,000. Therefore, the receivables turnover ratio is $100,000/$8,000 = 12.5x.

Refer to the Figure Above