Question

Powers Company reported net sales of $1,360,000, average Accounts Receivable, net of $62,500, and net income of $57,825. The accounts receivable turnover ratio is:

Answer 1

Answer: 21.8

Explanation:

The formula for this is: net credit sales / average accounts receivable.

When looking at the question you can see that

Net Sales = 1,360,000

Average accounts receivables = 62,600

Therefore you need to do 1,360,000/62500 which is equal to 21.76

After rounding, it will be 21.8