From the following details, calculate the accounts receivable turnover ratio:
Sales 400,000
Cost of the Goods sold 100,000
Account Receivable (at the beginning of the year) Rs.60,000
Account Receivable (at the end of the year) Rs.100,000
Accounts receivable turnover ratio = Net Sales/ Average Account Receivables Average Receivables = (60,000+100,000)/2=80,000 Accounts receivable turnover ratio = 400,000/80,000 = 5
