FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![### Accounts Receivable Turnover and Days' Sales in Receivables
A company reports the following financial data:
- **Sales:** $284,700
- **Average Accounts Receivable (net):** $54,750
**Objective:**
Determine:
1. The accounts receivable turnover.
2. The days' sales in receivables.
**Instructions:**
When required, round your answers to one decimal place. Assume a 365-day year.
#### 1. Accounts Receivable Turnover
**Formula:**
\[ \text{Accounts Receivable Turnover} = \frac{\text{Sales}}{\text{Average Accounts Receivable (Net)}} \]
**Calculation:**
\[ \text{Accounts Receivable Turnover} = \frac{284,700}{54,750} \]
**Result Placeholder:**
\[ \boxed{\text{Input Calculation Result Here}} \]
#### 2. Days' Sales in Receivables
**Formula:**
\[ \text{Days' Sales in Receivables} = \frac{365 \text{ days}}{\text{Accounts Receivable Turnover}} \]
**Calculation:**
First compute the Accounts Receivable Turnover using the result from step 1.
Then,
\[ \text{Days' Sales in Receivables} = \frac{365}{\text{Accounts Receivable Turnover Result}} \]
**Result Placeholder:**
\[ \boxed{\text{Input Days Result Here}} \text{ days} \]
**Time Remaining:**
1:48:20 (Note: This is the remaining time for an unspecified task, not part of the educational content.)
### Visual Representation
This section does not contain any graphs or diagrams. Inputs are required in the placeholders provided for the final turnover and days calculation.](https://content.bartleby.com/qna-images/question/ca679eb4-412f-4cd7-9e7c-d46cbc682971/bca10ad5-cf94-41a6-ba1b-bb080bfb4687/yierfu_processed.jpeg)
Transcribed Image Text:### Accounts Receivable Turnover and Days' Sales in Receivables
A company reports the following financial data:
- **Sales:** $284,700
- **Average Accounts Receivable (net):** $54,750
**Objective:**
Determine:
1. The accounts receivable turnover.
2. The days' sales in receivables.
**Instructions:**
When required, round your answers to one decimal place. Assume a 365-day year.
#### 1. Accounts Receivable Turnover
**Formula:**
\[ \text{Accounts Receivable Turnover} = \frac{\text{Sales}}{\text{Average Accounts Receivable (Net)}} \]
**Calculation:**
\[ \text{Accounts Receivable Turnover} = \frac{284,700}{54,750} \]
**Result Placeholder:**
\[ \boxed{\text{Input Calculation Result Here}} \]
#### 2. Days' Sales in Receivables
**Formula:**
\[ \text{Days' Sales in Receivables} = \frac{365 \text{ days}}{\text{Accounts Receivable Turnover}} \]
**Calculation:**
First compute the Accounts Receivable Turnover using the result from step 1.
Then,
\[ \text{Days' Sales in Receivables} = \frac{365}{\text{Accounts Receivable Turnover Result}} \]
**Result Placeholder:**
\[ \boxed{\text{Input Days Result Here}} \text{ days} \]
**Time Remaining:**
1:48:20 (Note: This is the remaining time for an unspecified task, not part of the educational content.)
### Visual Representation
This section does not contain any graphs or diagrams. Inputs are required in the placeholders provided for the final turnover and days calculation.
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- 7arrow_forwardA company reports the following: Sales $956,300 Average accounts receivable (net) 73,000 Round your answers to one decimal place. Assume a 365-day year. a. Determine the accounts receivable turnover.fill in the blank 1 b. Determine the number of days' sales in receivables.fill in the blank 2arrow_forwardAccounts Receivable Analysis A company reports the following: Sales $429,240 Average accounts receivable (net) 30,660 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover fill in the blank 1 b. Number of days' sales in receivables fill in the blank 2 daysarrow_forward
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