If Viera, Inc., has an accounts receivable turnover of 3.9 times and net sales of $3,436,812, what is its level of receivables? Round your final answer to the nearest dollar.
A) $881,234
B) $13,403,567
C) $1,340,357
D) $81,234

Question

Quizplus · Accepted Answer

The accounts receivable turnover is calculated as net sales divided by average accounts receivable. To find the level of receivables, you divide net sales by the turnover ratio: $3,436,812 / 3.9 = $881,233.85, which rounds to $881,234.