United Products Began the Year with an Accounts Receivable Balance

question 6

Essay

United Products began the year with an Accounts Receivable balance of $250,000,and had a year-end balance of $280,000.Credit sales of $800,000 generated a gross profit of $150,000.Calculate the receivables turnover ratio for the year.

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Definitions:

Global

Pertaining to or involving the entire world; often used in the context of businesses that operate internationally.

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Customer Relationship Management

A strategic approach to managing a company’s interactions with current and potential customers, typically involving the use of technology to organize, automate, and synchronize sales, marketing, customer service, and technical support.

B2B Marketers

Marketers who specialize in creating and implementing marketing strategies for transactions between businesses, as opposed to transactions between businesses and consumers.