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Doreen Smith
on Dec 16, 2024

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The financial statements of Daye Manufacturing Company report net sales of $720000 and accounts receivable of $70000 and $90000 at the beginning and end of the year respectively. What is the accounts receivable turnover for Daye?

A) 4.5 times
B) 8 times
C) 9 times
D) 10.3 times

Accounts Receivable Turnover

A financial ratio indicating how many times a company's accounts receivable are collected during a specific period.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Accounts Receivable

The money owed to a company by its customers for goods or services delivered or used but not yet paid for.

  • Calculate and interpret the accounts receivable turnover.
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Faith AyoolaDec 21, 2024
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