Copyright

The financial statements of Sheffield Manufacturing Company reported net sales of $546,000,...

Question:

The financial statements of Sheffield Manufacturing Company reported net sales of $546,000, accounts receivable of $73,000 and $83,000 at the beginning and end of the year, respectively. What is the accounts receivable turnover for Sheffield?

Answer and Explanation:

Accounts receivable turnover (ART) = Net sales / average receivables

= 546,000 /((73,000+83,000)/2)

= 7 times


Learn more about this topic:

Average Collection Period: Formula & Analysis

from Financial Accounting: Homework Help Resource

Chapter 1 / Lesson 9
11K

Related to this Question

Explore our homework questions and answer library