Receivables turnover

Receivables turnover - receivables at the beginning of the...

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Receivables turnover . The  receivable turnover ratio  calculates the number of times in an  operating cycle (normally one year) the company collects its receivable balance. It is calculated by  dividing net credit sales by the average net receivables. Net credit sales is net sales less cash sales.  If cash sales are unknown, use net sales. Average net receivables is usually the balance of net 
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Unformatted text preview: receivables at the beginning of the year plus the balance of net receivables at the end of the year divided by two. If the company is cyclical, an average calculated on a reasonable basis for the company's operations should be used such as monthly or quarterly....
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

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Receivables turnover - receivables at the beginning of the...

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