Use the following information to answer questions
Joliet's 2009 and 2010 financial statements included the following data:

Assume a 360-day year for all calculations.
-What is Joliet's accounts receivable turnover ratio for 2010?

Question

Use the following information to answer questions 
Joliet's 2009 and 2010 financial statements included the following data:
  
Assume a 360-day year for all calculations.
-What is Joliet's accounts receivable turnover ratio for 2010?

Quizplus · Accepted Answer

The accounts receivable turnover ratio is calculated by dividing net credit sales by average accounts receivable. For 2010, Joliet's net credit sales were $1,100,000 and its average accounts receivable were $100,000. Therefore, Joliet's accounts receivable turnover ratio for 2010 is $1,100,000 / $100,000 = 11.0.

Use the Following Information to Answer Questions