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The 2016 financial statements of BNSF Railway Company report total revenues of $19,829 million, accounts receivable of $1,272 million for 2016 and $1,198 million for 2015. The company’s accounts receivable turnover for the year is: Select one: A. 17.0 times B. 8.9 times C. 16.1 times D. 17.9 times E. None of the above

Respuesta :

Answer:

C. 16.1 times

Explanation:

Accounts receivable turnover ratio  = Credit sales ÷ average accounts receivable

where,  

Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2

= ($1,198 + $1,272) ÷ 2

= $1,235 million

And, the net credit sale is $ 19,829 million  

Now put these values to the above formula  

So, the answer would be equal to  

= $19,829 million ÷ $1,235 million

= 16.1 times

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