Orantes Company's accounts receivable turnover for 20 × 6 was closest to:

Question

Quizplus · Accepted Answer

The accounts receivable turnover is calculated as net credit sales divided by average accounts receivable. As the net credit sales and average accounts receivable figures are not given, we cannot calculate the exact turnover. However, we can make an approximation based on the answer choices given. Looking at the choices, option C is the closest to the industry average of 12 times, implying Orantes Company has a higher receivable turnover than the industry average. Therefore, the best answer choice is C) 14.8 times.

Orantes Company's Accounts Receivable Turnover for 20 × 6 Was