Powers Company reported Net Sales of $1,200,000 and average Accounts Receivable, net of $78,500. The accounts receivable turnover ratio is:
A)0.65 times
B)14.3 times
C)28.6 times
D)15.3 times
E)16.3 times

Question

Quizplus · Accepted Answer

Accounts Receivable Turnover Ratio = Net Sales / Average Accounts Receivable

Accounts Receivable Turnover Ratio = $1,200,000 / $78,500 = 15.3 times.

Therefore, the best answer is D) 15.3 times.

Powers Company Reported Net Sales of $1,200,000 and Average Accounts