South Sea's sales were $60,000 for 2011 and $45,000 for 2012.Average net receivables were $4,000 for both 2011 and 2012.The receivables turnover for 2012 was ________.

Name: South Sea's sales were $60,000 for 2011 and $45,000 for 2012.Average net receivables were $4,000 for both 2011 and 2012.The receivables turnover for 2012 was ________.
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Question

Quizplus · Accepted Answer

Receivables turnover = Annual credit sales / Average accounts receivable 
For 2012: 
Receivables turnover = $45,000 / $4,000 = 11.25 times

South Sea's Sales Were $60,000 for 2011 and $45,000 for 2012.Average