The Ward Company has provided the following information:
Net sales totaled $750,000.
Beginning net accounts receivable was $65,000.
Ending net accounts receivable was $85,000.
What was Ward's receivable turnover ratio?

Question

The Ward Company has provided the following information:
 Net sales totaled $750,000.
 Beginning net accounts receivable was $65,000.
Ending net accounts receivable was $85,000.
What was Ward's receivable turnover ratio?

Quizplus · Accepted Answer

Receivable turnover ratio (10) = Net sales ($750,000) / Average accounts receivable ($75,000*). *Average net accounts receivable ($75,000) = [beginning net accounts receivable ($65,000) + ending net accounts receivable ($85,000)] / 2

The Ward Company Has Provided the Following Information