Answer:
The accounts receivables turnover ratio is 12.5 times.
Explanation:
The accounts receivable turnover ratio is a measure to check the efficiency of the business in collecting its average accounts receivables during the year. It is calculated as follow,
Accounts receivables turnover = Net Sales / Average accounts receivables
Where,
Average accounts receivables = (Opening accounts receivables + Closing accounts receivables) / 2
The average accounts receivables = (135800 + 144800) / 2 = $140300
The accounts receivables turnover = 1753750 / 140300 = 12.5 times
