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Question: If a company has net sales of $773,000 and accounts receivable of $169,000. What are the company's accounts receivable turnover?

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Solution Summary

The solution explains the components needed to calculate the accounts receivables turnover, and shows how the calculate the ratio. In addition, the solution explains concisely what the value of receivables turnover means and how the result can be evaluated.

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Accounts Receivables Turnover (also called receivables turnover) is a cash management ratio that tells us, how many times the company turns over payments received for its products or services, usually in a year. The higher the turnover is, the better it is, because it means that ...

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