The following selected information is from Acme's annual report for the years ended December 31:

-Refer to the Acme annual report above.Calculate the accounts receivable turnover ratio for 2012.
A)11.0 times
B)6.0 times
C)8.8 times
D)The answer cannot be determined from the information given.

Question

The following selected information is from Acme's annual report for the years ended December 31:

-Refer to the Acme annual report above.Calculate the accounts receivable turnover ratio for 2012.
A)11.0 times 
B)6.0 times 
C)8.8 times 
D)The answer cannot be determined from the information given.

Quizplus · Accepted Answer

Accounts receivable turnover ratio = Net credit sales / Average accounts receivable= $1,200,000 / ($100,000 + $120,000) / 2= $1,200,000 / $110,000= 11.0 times

The Following Selected Information Is from Acme's Annual Report for the Years