Refer to the following selected financial information from marston company. compute the company's accounts receivable turnover for year 2.
year 2 year 1
accounts receivable, net 86,500 82,750
net sales 723,000 693,000
multiple choice
a. 8.36.
b. 8.37.
c. 4.78.
d. 8.59.
e. 8.54.

The correct option is E

Explanation:

The formula to compute the accounts receivable turnover of the company for the Year 2 is as:

Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable

where

Net Credit Sales be $723,000

And

Average Accounts Receivable is computed as:

Average Accounts Receivable = Accounts receivable Year 1 + Accounts receivable Year 2 / 2

= $86,500 + $82,750 / 2

= $169,250 / 2

= $84,625

Putting the values in the above formula:

= $723,000 / $84,625

= 8.54

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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