The following data are taken from the comparative balance sheets of Fulton Company.
Compute and interpret its accounts receivable turnover for year 2005 (competitors average a turnover of 7.5).
Accounts receivable $152,900 $133,700
Net Sales 754,200 800,600.
The accounts receivable turnover ratio is a measure of the number of times, on average, receivables are collected during the accounting period (one year, in this ...
The solution provides the computation of the turnover rate for accounts receivable in a comparative situation. Also presented is a list of four reasons to calculate the change in the turnover followed by a suggestion about which reasons should be investigated for this company.