The following information is from the annual financial statements of Raheem Company.

The following information is from the annual financial statements of Raheem Company.

		2017			2016			2015
Net sales		$	338,000		$	269,000		$	323,000
Accounts receivable, net (year-end)			46,400			44,200			40,900

 
Compute its accounts receivable turnover for 2016 and 2017.


Explanation
Accounts receivable turnover = Net sales / Average net accounts receivable

Year 2016 accounts receivable turnover:

$269,000	=	6.3 times
($44,200 + $40,900) / 2

Year 2017 accounts receivable turnover:

$338,000	=	7.5 times
($46,400 + $44,200) / 2

Thank you!