Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: The company's accounts receivable turnover for Year 2 is closest to:

Question

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement:  The company's accounts receivable turnover for Year 2 is closest to:

Quizplus · Accepted Answer

Accounts receivable turnover = Sales on account ÷ Average accounts receivable*
= $1,290,000 ÷ $247,500 = 5.21 (rounded)
*Average accounts receivable =
($255,000 + $240,000)÷ 2 = $247,500

Ribaudo Corporation Has Provided the Following Financial Data from Its