Pepperdine reported net sales of $8,600 million,net income of $126 million and average accounts receivable of $890 million.Its accounts receivable turnover is:
A)37.8.
B)9.7.
C)68.3.
D)7.1.
E)51.7.

Question

Quizplus · Accepted Answer

Accounts receivable turnover can be calculated as net sales divided by average accounts receivable. Therefore, accounts receivable turnover for Pepperdine is:

$8,600 million / $890 million = 9.7

So the best choice is B.

Pepperdine Reported Net Sales of $8,600 Million,net Income of $126