Martin Sales Provides the Following Information: Net Credit Sales: $750,000

question 46

Multiple Choice

Martin Sales provides the following information: Net credit sales: $750,000
Beginning net accounts receivable: $40,000
Ending net accounts receivable: $20,000
Calculate the accounts receivable turnover ratio. (Round to the nearest whole number.)

• A)24 times
• B)25 times
• C)27 times
• D)22 times

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Definitions:

Raw Materials

The basic materials and components required in the manufacturing process to produce finished goods.

Production

The process of creating goods and services using labor, machinery, and raw materials.

Finished Goods

Items that have finished being manufactured and are prepared for purchase by consumers.

Inventory

The raw materials, work-in-progress, and finished goods that a company holds for the purpose of sale in the future.