07-28-2010, 06:53 AM

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 <u>508100</u>

Profit 381600

Operating Exp. <u>145300</u>

Operating Income 236300

Interest Exp <u>3500</u>

Income Before Tax 232800

Income Taxes <u>80400</u>

Net Income 153400

---------------------------------

Cash 8200

Temp Investments 28000

A/R, net 52900

Inventory 23900

Prepaid Expenses 4900

Notes Receivable 9500

Plant, assets <u>492000</u>

Total Assets 619400

I get 16.81 (

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 <u>508100</u>

Profit 381600

Operating Exp. <u>145300</u>

Operating Income 236300

Interest Exp <u>3500</u>

Income Before Tax 232800

Income Taxes <u>80400</u>

Net Income 153400

---------------------------------

Cash 8200

Temp Investments 28000

A/R, net 52900

Inventory 23900

Prepaid Expenses 4900

Notes Receivable 9500

Plant, assets <u>492000</u>

Total Assets 619400

I get 16.81 (