SAles - 960,000 Average AR (net) - 48,000 1) AR turnover rate 2) number of days\

ID: 2470247 • Letter: S

Question

SAles - 960,000

Average AR (net) - 48,000

1) AR turnover rate

2) number of days' sales in receivable.

AR Turnover = Sales/Average AR = 960,000 : 48,000 = 20

Number of days's sales in receivable = average AR : Average Daily Sales = 48,000 : (960,000:365) = 48,000:2630 = 18.2 days

FIRST Assignment

Sales - 832,000

Average AR - 80,000

Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round to one decimal place.

Ratio of Sales to Assets = Sales/Average Total Assets (exludes long term investments).

Sales - 2, 250, 000

Average total assets - 1,500,000

Ratio of Sales to Assets = 2,250,000 / 1,500,000 = 1.5

SECOND Assignment:

Sales - 1,800,000

Average total assets - 1,125,000

Determine the ratio of sales to assets.

First Assignment:

(a) Average recievable turnover = Net sales / Average recievables = $832000 / $80000 = 10.40

(b) The number of say' in sales receivables = 365 days / Accounts receivables turnover = 365 days / 10.40 = 35.1 days

SECOND Assignment:

Sales - 1,800,000

Average total assets - 1,125,000

The ratio of sales to assets.

= Sales/Average Total Assets (exludes long term investments)

= 1800000 / 1125000

= 1.60

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