Quiz: Chapter 17 Quiz Time Remaining: 01:06:44 Submit Quiz This Question: 10 pts

Question

Quiz: Chapter 17 Quiz Time Remaining: 01:06:44 Submit Quiz This Question: 10 pts 5 of 10 (D complete) This Quiz: 100 pts possible Wilson, Inc. provides the following data 2017 Cash Accounts Receivable, Net Merchandise Inventory Property, Plant, and Equipment, Net Total Assets 2016 $43,000 $25,000 108,000 62,000 50,000 190,000 20,000 $416,000 $257,000 75,000 Net Credit Sales Cost of Goods Sold Gross Profit $240,000 120,.000) $120,000 Calculate accounts receivable turnover ratio form 2017. Round your answer to two decimal places.) OA. 222 times 0 B. 4.80 times O c. 2.82 times O D. 3.85 times

Explanation / Answer

Ans :- (C) :- 2.82 times

-->> Account receviable turnover ratio

= Net Credit Sales / Average Accounts receviable

• Net Credit Sales = $ 240,000 ( given)

• Average Accounts receviable = 108,000 + 62,000 / 2

= $ 85,000

-->> turnover ratio = $ 240,000 /$ 85,000

= 2.82 times

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