Accounts Receivable Turnover - Printable Version +- Accountancy Forum (https://www.accountancy.com.pk/forum) +-- Forum: The Profession (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=4) +--- Forum: Accounting and Audit (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=7) +--- Thread: Accounts Receivable Turnover (/showthread.php?tid=8442) Accounts Receivable Turnover - 4MySanity - 07-28-2010 I have a pretty basic question for most of you... I'm having trouble understanding how to get the Accounts Receivable Turnover. I understand it is calculated by NET-Sales/Accounts Receivable or Net-Sales/Accounts Receivable & Short-Term Notes Receivable, but my problem does not seem to be working out. I know the answer to the problem, but I cant seem to arrive at the same solution the exercise gives. Here is the problem if anyone wants to take a look, the answer apparently is 15.93 Sales 889700 COGS 508100 Profit 381600 Operating Exp. 145300 Operating Income 236300 Interest Exp 3500 Income Before Tax 232800 Income Taxes 80400 Net Income 153400 --------------------------------- Cash 8200 Temp Investments 28000 A/R, net 52900 Inventory 23900 Prepaid Expenses 4900 Notes Receivable 9500 Plant, assets 492000 Total Assets 619400 I get 16.81 ( - Information Consultant - 08-04-2010 What is the answer pls tell me - Mobi - 09-01-2010
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Originally posted by Information Consultant
What is the answer pls tell me
both ansers r rong. d corect is as net sales/(net rcvabls + nots recvables) = Rcvabl turnover in times 889700/(52900+492000) = 1.62 times n if u want to turnover in days so u wil get by 365/in times OR (net rcvabls + nots rcvabls)/net sales x 365 365/1.62 = 223 days - blue sun - 09-17-2010 yes ur answer is right. - Arabian - 10-01-2010
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Originally posted by 4MySanity
I have a pretty basic question for most of you... I'm having trouble understanding how to get the Accounts Receivable Turnover. I understand it is calculated by NET-Sales/Accounts Receivable or Net-Sales/Accounts Receivable & Short-Term Notes Receivable, but my problem does not seem to be working out. I know the answer to the problem, but I cant seem to arrive at the same solution the exercise gives. Here is the problem if anyone wants to take a look, the answer apparently is 15.93 Sales 889700 COGS 508100 Profit 381600 Operating Exp. 145300 Operating Income 236300 Interest Exp 3500 Income Before Tax 232800 Income Taxes 80400 Net Income 153400 --------------------------------- Cash 8200 Temp Investments 28000 A/R, net 52900 Inventory 23900 Prepaid Expenses 4900 Notes Receivable 9500 Plant, assets 492000 Total Assets 619400 I get 16.81 (
Is this a full question or Extract from the question,There should be some Opening bal for A/c Recieveables, because formula for A/C Rec is Net Sales/Avg A/c Recieveables, - Arabian - 10-01-2010
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Originally posted by Mobi
quote
Originally posted by Information Consultant
What is the answer pls tell me
both ansers r rong. d corect is as net sales/(net rcvabls + nots recvables) = Rcvabl turnover in times 889700/(52900+492000) = 1.62 times n if u want to turnover in days so u wil get by 365/in times OR (net rcvabls + nots rcvabls)/net sales x 365 365/1.62 = 223 days
Mobi Brother You have taken notes recieveable as 492000,which is the amount for Assets,