Ratios: Accounts Receivable (AR) Turnover

Concept: Ratios: Accounts Receivable (AR) Turnover

8m

Problem: ABC Company had $200,000 in Net Sales and Gross Profit of $80,000. If AR had a balance of $16,000, what is the AR Turnover ratio?

2m

Ratios: Accounts Receivable (AR) Turnover Additional Practice Problems

Owl computers had an accounts receivable turnover ratio of 8, net sales of $120,000 and gross sales of $150,000. What was their average balance in the accounts receivable?

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If a company has net sales of $500,000; gross sales of $600,000 and an average accounts receivable balance of $100,000 – what is the accounts receivable turnover?

a. 3.0

b. 4.0

c. 5.0

d. 6.0

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Beginning accounts receivable were $100,000 and the ending accounts receivable are $130,000. Net sales for the period total $1,265,000. What is the accounts receivable turnover?

A.11.00

B.12.00

C.9.73

D.12.65

E.None of the above

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During 2014, XYZ Inc. sold merchandise worth $320,000. It has $60,000 of beginning accounts receivables and $70,000 of ending accounts receivables. What is company’s receivable turnover (rounded)?

A. 73.00

B. 4.92

C. 11.25

D. 4.09

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On December 31, G Company provided the following information:

                                                 January 1             December 31
Accounts receivable                     $ 3,600                      $ 4,900
Allowance for doubtful accounts        200                            300
Total revenue                                                                 $38,800
Cash sales                                                                         2,800

G Company’s accounts receivable turnover ratio was:

a) 9.7

b) 9.1

c) 9.0

d) 8.5

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