A Company Reports the Following:
​ $$\begin{array} { l r } \text { Net sales } & \$ 750,000 \\\text { Average accounts receivable (net) } & \$ 50,000\end{array}$$

question 44

Essay

A company reports the following:
​ $$\begin{array} { l r } \text { Net sales } & \$ 750,000 \\\text { Average accounts receivable (net) } & \$ 50,000\end{array}$$ ​
Determine the (a) accounts receivable turnover and (b) days' sales in receivables.Round your answers to one decimal place.

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Definitions:

Financial Leverage

The use of borrowed funds to increase one's investment potential, which can magnify both gains and losses.

Current Assets

Short-term assets that are expected to be converted into cash within one year.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the net worth attributable to shareholders.

Inventory

The goods and materials that a business holds for the ultimate goal of resale or processing.