Parr hardware store had net credit sales of $6.5mil and cost of goods sold of $5mil for the year. the accounts receivable balances at the beginning and end of the year were $600k and $700k, respectively. the receivables turnover was

Accounts Receivables Turnover Ratio = = 10 times.

Explanation:

Accounts Receivables Turnover ratio =

Here Net Credit Sales = $6.5 million

Accounts Receivables Opening Balance = $600,000

Accounts Receivables Closing Balance = $700,000

Average Accounts Receivable Balance =

Accounts Receivables Turnover Ratio = = 10 times.

This shows that accounts receivables are on an average 1/10th of credit sales.

Final Answer

Accounts Receivables Turnover Ratio = = 10 times.

they can see what that city is producing and to also see if they can some how get that product. like gold in africa.

correct, but each time you dont pay the price of the penalty can increase.