I have to calculate account receivable ratio for two years

SALES REVENUE: 2.686585
aCCOUNT RECEIVABLES : (2004) 291277 (2003) 271766

HAVING IN MIND THAT 60% OF SALES WAS ON CREDIT.
I HAD TRY BUT THE RESULT IS NOT CORRECT

Hi Zulay!
This is the formula for calculating the ratio.
Accounts Receivable Turnover Ratio = annual credit sales / average accounts receivable.

Lets first find your annual credit sales which you say is 60%
=0.60*2,686,585=1,611,951.00 this is your annual credit sales.

two, lets now get the average accounts receivable = 291,277 + 271,766=563,043.00/2
=281,521.50
Annual credit sales=1,611,951.00
Average accounts receivable=281,521.50
Accounts receivable turnover ratio = 1,611,951.00 /281,521.50 =5.7

A high accounts receivable turnover ratio indicates a tight credit policy.

A low or declining accounts receivable turnover ratio indicates a collection problem, part of which may be due to bad debts.