Use the following information to answer
Green Thumb Garden Supplies reported the following information for 2012 and 2013.
-What is the receivables turnover ratio for 2013?
A)2.7 times
B)2.0 times
C)3.2 times
D)3.8 times

Question

Use the following information to answer 
Green Thumb Garden Supplies reported the following information for 2012 and 2013. 
-What is the receivables turnover ratio for 2013?
A)2.7 times 
B)2.0 times 
C)3.2 times 
D)3.8 times

Quizplus · Accepted Answer

The receivables turnover ratio for 2013 is calculated by dividing net credit sales ($570,000) by average accounts receivable ($178,125). This gives a receivables turnover ratio of approximately 3.2 times. None of the other answer choices match this calculation.

Use the Following Information to Answer