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

Accounts receivable turnover = Annual Credit Sales / Average Accounts Receivable

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