Find accounts receivable turnover if a firm has an accounts receivable of $80,000,a total asset turnover of .75,and total assets of $230,000.
A) 2.15
B) 3.8
C) 2.9
D) 1.5
E) 0.65

Question

Quizplus · Accepted Answer

Accounts receivable turnover = 11ea7fdb_fc2e_4f25_a768_691aede1dcc1_TB2902_11 Step 1 - Use total asset turnover to calculate sales.
Total asset turnover = 11ea7fdb_fc2e_7636_a768_dd8639822b66_TB2902_11 .75 = 11ea7fdb_fc2e_7637_a768_77a0b784004d_TB2902_11 Sales = 172,500
Step 2 - Use the sales figure to solve for accounts receivable turnover.
Accounts receivable turnover = 11ea7fdb_fc2e_7638_a768_75ad17d25406_TB2902_11 = 2.15

Find Accounts Receivable Turnover If a Firm Has an Accounts