Graff Company has cash of $40,000, net accounts receivable of $90,000, and net sales of $720,000. Last

Question:

Graff Company has cash of $40,000, net accounts receivable of $90,000, and net sales of $720,000. Last year’s net accounts receivable were $70,000. Compute the following ratios:

(a) Receivable turnover and

(b) Days sales uncollected.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...