If Apple Company had sales during the year of $10,000,000,an average accounts receivable
of $2,000,000,and net income of $500,000,its accounts receivable turnover ratio would be 0.25.

Question

Quizplus · Accepted Answer

The accounts receivable turnover ratio is calculated by dividing sales by the average accounts receivable. In this case, $10,000,000 / $2,000,000 = 5, not 0.25.

If Apple Company Had Sales During the Year of $10,000,000,an