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If Newton Manufacturers has an accounts receivable turnover of 4.8 times and net sales of $7,812,379, what would its receivables be?

Respuesta :

Answer:

$1,627,579

Explanation:

The formula and the computation of the account receivable turnover ratio is presented below:

Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable  

4.8 times = $7,812,379 ÷  Average accounts receivable  

So, the average accounts receivable would be

= $7,812,379 ÷ 4.8 times

= $1,627,579

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