Question

flying tigers, inc., has net sales of $774,000 and accounts receivables of $157,000. what is the...

flying tigers, inc., has net sales of $774,000 and accounts receivables of $157,000. what is the firm's accounts receivables turnover? (Give your answer up to two decimal places)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Accounts Receivable Turnover Ratio is one of the accounting activity ratios, which measures the number of times on average, receivable are collected during the period.

Accounts receivable turnover is also known as the debtor's turnover ratio.


Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts Receivables

net sales is consideres as net credit sales

Average accounts receivable = (opening accounts receivables + closing accounts receivables) / 2

Given Accounts Receivables are considered as average accounts receivables

Accounts Receivable Turnover Ratio = $ 774000 / $ 157000 = 4.93

please comment if any further assistance is required

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Blue Air Inc., has net sales of $704,000 and accounts receivables of $162,000. What are the...
Blue Air Inc., has net sales of $704,000 and accounts receivables of $162,000. What are the firm's accounts receivables turnover?
Accounts Receivable Turnover and Days' Sales in Receivables Quasar, Inc. sells clothing, accessories, and personal care...
Accounts Receivable Turnover and Days' Sales in Receivables Quasar, Inc. sells clothing, accessories, and personal care products for men and women through its retail stores. Quasar reported the following data for two recent years: Year 2 Year 1 Sales $3,831,040 $3,798,190 Accounts receivable 306,600 292,000 Assume that accounts receivable were $335,800 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place. Year 2: Year 1: b. Compute...
Nite sales- 112,500 beginning receivables, net- 19,000 ending receivables- 18,500 Day sales- 32,000 beginning receivables, net-...
Nite sales- 112,500 beginning receivables, net- 19,000 ending receivables- 18,500 Day sales- 32,000 beginning receivables, net- 3,500 ending receivables, net- 4,400 Compute the following for each company: 1. Accounts receivable turnover. (Assume all sales were credit sales.) 2. Average collection period.
Louis Inc. has net income $2,500,000, a profit margin of 8% and accounts receivables of $1,000,000....
Louis Inc. has net income $2,500,000, a profit margin of 8% and accounts receivables of $1,000,000. Assuming 75% of sales are on credit, calculate the company's days sales in receivables. (Round to 2 decimals)
Recent financial statements of General Mills, Inc. report net sales of $12,571,768,000. Accounts receivable are $944,350,000...
Recent financial statements of General Mills, Inc. report net sales of $12,571,768,000. Accounts receivable are $944,350,000 at the beginning of the year and $980,713,000 at the end of the year. 1) Compute General Mills' accounts receivable turnover (Round answer to 2 decimal places, e.g. 15.25.) 2) Compute General Mills’ average collection period for accounts receivable in days. (Round answer to 2 decimal places, e.g. 15.25.)
XYZ Company has an accounts receivable turnover of 3.9 times and net sales of $3,436,812, calculate...
XYZ Company has an accounts receivable turnover of 3.9 times and net sales of $3,436,812, calculate the value of the accounts receivables.
Lloyd Inc. has sales of $450,000, a net income of $36,000, and the following balance sheet:...
Lloyd Inc. has sales of $450,000, a net income of $36,000, and the following balance sheet: Cash $148,770    Accounts payable $117,450 Receivables 244,035    Notes payable to bank 71,775 Inventories 613,350    Total current liabilities $189,225 Total current assets $1,006,155    Long-term debt 207,495 Net fixed assets 298,845    Common equity 908,280 Total assets $1,305,000    Total liabilities and equity $1,305,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current...
Lloyd Inc. has sales of $500,000, a net income of $35,000, and the following balance sheet:...
Lloyd Inc. has sales of $500,000, a net income of $35,000, and the following balance sheet: Cash $ 144,450    Accounts payable $ 141,750 Receivables 194,400    Notes payable to bank 102,600 Inventories 499,500    Total current liabilities $ 244,350 Total current assets $ 838,350    Long-term debt 189,000 Net fixed assets 511,650    Common equity 916,650 Total assets $ 1,350,000    Total liabilities and equity $ 1,350,000 The new owner thinks that inventories are excessive and can be lowered...
Lloyd Inc. has sales of $750,000, a net income of $67,500, and the following balance sheet:...
Lloyd Inc. has sales of $750,000, a net income of $67,500, and the following balance sheet: Cash $168,000 Accounts payable $171,000 Receivables 261,000 Notes payable to bank 45,000 Inventories 855,000 Total current liabilities $216,000 Total current assets $1,284,000 Long-term debt 249,000 Net fixed assets 216,000 Common equity 1,035,000 Total assets $1,500,000 Total liabilities and equity $1,500,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry...
Lloyd Inc. has sales of $400,000, a net income of $32,000, and the following balance sheet:...
Lloyd Inc. has sales of $400,000, a net income of $32,000, and the following balance sheet: Cash $86,400    Accounts payable $97,200 Receivables 146,880    Notes payable to bank 37,800 Inventories 421,200    Total current liabilities $135,000 Total current assets $654,480    Long-term debt 214,920 Net fixed assets 425,520    Common equity 730,080 Total assets $1,080,000    Total liabilities and equity $1,080,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT