At the end of the first year,the Treadwell Tire Company had accounts receivable of $67,900 and at the end of the second year the company had accounts receivable of $72,400.If the company's net sales revenue during the second year was $876,875,the receivables turnover ratio for the second year was:

Question

Quizplus · Accepted Answer

Avg.Net Receivables = (67,900 + 72,400)/2 = 70,150
Receivables Turnover Ratio = 876,875/70,150 = 12.5.

At the End of the First Year,the Treadwell Tire Company