Accounts Receivable Turnover Rate

question 149

Essay

Accounts receivable turnover rate
During 2010, Larsen Company's accounts receivable averaged $750,000. Larsen's 2010 income statement reported net sales of $6,780,000, uncollectible accounts expense of $160,000, and net income of $768,000. (Assume 365 days in a year.)
Using the information, compute the following for Larsen Company:
(a) Accounts receivable turnover: (Round to the nearest two decimals.)
(b) Average number of days to collect accounts receivable (round to nearest day, if necessary): (Round to the nearest %.)

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Definitions:

Labia Minora

The two mucocutaneous folds of membrane within the labia majora.

Clitoris

A small, sensitive organ located at the top of the vulva, involved in female sexual pleasure.

Vagina

A muscular tube leading from the external genitals to the cervix of the uterus in women and most female mammals.

Residual

Pertaining to that which is left as a residue.