Refer to Exhibit 6-2.Green's accounts receivable turnover for 2010 was

A) 2.2 times
B) 26.0 times
C) 27.4 times
D) 28.9 times

Question

Refer to Exhibit 6-2.Green's accounts receivable turnover for 2010 wasA) 2.2 timesB) 26.0 timesC) 27.4 timesD) 28.9 times

Jaelin Nicole · Accepted Answer

Final Answer : C, Explanation :  The accounts receivable turnover is calculated as Net Sales / Average Accounts Receivable. Net sales are given as $5,200,000. The average accounts receivable is the sum of the beginning and ending accounts receivable divided by 2, which is ($200,000 + $180,000) / 2 = $190,000. Therefore, the accounts receivable turnover is $5,200,000 / $190,000 = 27.4 times.

Refer to Exhibit 6-2.Green's accounts receivable turnover for 2010 was

A) 2.2 times
B) 26.0 times
C) 27.4 times
D) 28.9 times

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