The Deck Food Company accounts show the following for the fiscal year ended Sept

Question

The Deck Food Company accounts show the following for the fiscal year ended September:

Gross sales

$XXX

Sales returns and allowances

    XX

Net sales

$451,357

Accounts receivable (net):

On 9/30/15

$ 123,470

On 9/30/16

117,256

                        What is the turnover of accounts receivable?

Answer to nearest two decimal places without any commas or words (e.g. 1.25 not 1.25 times  or 125%).  Enter a negative number as -10 not (10).

Gross sales

$XXX

Sales returns and allowances

    XX

Net sales

$451,357

Accounts receivable (net):

On 9/30/15

$ 123,470

On 9/30/16

117,256

Explanation / Answer

Average receivable = (123470+117256/2 ) = 120363

Account receivable turnover = Net sales/average receivable

= 451357/120363

Account receivable turnover = 3.75

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