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    JeaMichelle's Avatar
    JeaMichelle Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 29, 2011, 09:47 AM
    Help with accounting problems?
    The following information is available for Compton Company:
    2012 2011
    Accounts receivable $ 460,000 $ 500,000
    Inventory 280,000 320,000
    Net credit sales 2,470,000 1,400,000
    Cost of goods sold 1,860,000 1,060,000
    Net income 300,000 170,000


    The receivables turnover ratio for 2012 is
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Nov 29, 2011, 12:34 PM
    Accounts receivable turnover = Annual Credit Sales / Average Accounts Receivable

    Average Accounts Receivable = Beginning Accounts Receivable + ending Accounts Receivable / 2
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