Calculating accounts receivable turnover ratio through Balance Sheet (1 Viewer)

moon_princess

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How do you calculate the accounts recievable turnover ratio through a balance sheet?
 

totally_screwed

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How do you calculate the accounts recievable turnover ratio through a balance sheet?
the acc receivable turnover ratio is (sales/acc receivable) right?
you're gonna need more than just a balance sheet to calculate it then, because sales are shown on an income statement while accounts receivable are shown on a balance sheet (under current assets).
I've seen mc questions where they provide a balance sheet, and underneath there's some data from the business's income statement (detailing the sales), and u have to find the acc receivable turnover ratio which is possible. so to answer your question, u can't calculate it through a balance sheet alone and questions won't ask for the impossible like that
 

totally_screwed

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oh wait and then after you do sales/acc receivable, you have to divide 365 by your answer to get the number of days it takes for the business to collect unpaid debts
 

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