Sandburg Veterinarian reports the following information for the year: What is Sandburg's receivables turnover ratio?
$$\begin{array} { | l | r | }
\hline \text { Net credit sales } & \$ 120,000 \
\hline \text { Average accounts receivable } & 20,000 \
\text { Cash collections on credit sales } & 100,000 \
\hline
\end{array}$$

Question

Sandburg Veterinarian reports the following information for the year: What is Sandburg's receivables turnover ratio?
$$\begin{array} { | l | r | } 
\hline \text { Net credit sales } & \$ 120,000 \
\hline \text { Average accounts receivable } & 20,000 \
\text { Cash collections on credit sales } & 100,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The receivables turnover ratio is calculated by dividing net credit sales by average accounts receivable, which is $120,000 / $20,000 = 6.0.

Sandburg Veterinarian Reports the Following Information for the Year: What