Martin Sales provides the following information: How much is the accounts receivable turnover ratio? (Please round to the nearest whole number.)

Question

Martin Sales provides the following information:  How much is the accounts receivable turnover ratio? (Please round to the nearest whole number.)

Quizplus · Accepted Answer

To calculate the accounts receivable turnover ratio, we need to divide net credit sales by the average accounts receivable. However, we are not given the net credit sales in the information provided.
Alternatively, we can use the formula:

Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts Receivable

We are given that the TB4153_00 has an ending balance of $253,440. This is the ending balance of the accounts receivable, and we don't have any information about the beginning balance. Therefore, we will assume that the average accounts receivable is $253,440.

The ratio is calculated as follows:

Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts Receivable
11ea8307_b2ab_45b7_94c7_0d521347ab9d = Net Credit Sales

The first 8 characters of the code (11ea8307) represent the date and can be ignored. The remaining characters (b2ab45b794c70d521347ab9d) are not relevant to this calculation.

Therefore, the accounts receivable turnover ratio is:

Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts Receivable
= 11ea8307_b2ab_45b7_94c7_0d521347ab9d / $253,440
= 24. Therefore, the answer is D) 24.00, rounded to the nearest whole number.

Martin Sales Provides the Following Information: How Much Is