Calculate the Average Accounts Receivable, the Accounts Receivable Turnover Ratio, and the Accounts Receivable Turnover in Days
Last year, Nikkola Company had net sales of $2,299,500,000 and cost of goods sold of $1,755,000,000. Nikkola had the following balances:
| |
January 1 |
December 31 |
| Accounts receivable |
$142,650,000 |
$172,350,000 |
| Inventories |
54,374,200 |
62,625,800 |
Required:
Note: Round answers to one decimal place. Assume 365 days per year.
1. Calculate the average accounts receivable.
2. Calculate the accounts receivable turnover ratio.
3. Calculate the accounts receivable turnover in days.