Millward Corporation\'s books disclosed the following information for the year e
ID: 2472898 • Letter: M
Question
Millward Corporation's books disclosed the following information for the year ended December 31, 2008:
Net credit sales ....................................
$1,500,000
Net cash sales ......................................
240,000
Accounts receivable at beginning of year ............
200,000
Accounts receivable at end of year ..................
400,000
Millward's accounts receivable turnover is
3.75 times.
4.35 times.
5.00 times
5.80 times
Net credit sales ....................................
$1,500,000
Net cash sales ......................................
240,000
Accounts receivable at beginning of year ............
200,000
Accounts receivable at end of year ..................
400,000
Explanation / Answer
Millward's accounts receivable turnover =Net credit sales/(Accounts receivable at beginning of year+Accounts receivable at end of year)/2
=1,500,000/300,000=5.00 times.