Explain the importance of analysing Financial Statements through Ratios.

ii) Albert Ltd sells goods on cash as well as credit. The following particulars are extracted from their books of account.

Total Gross sales $100,000

Cash sales (included in above) $ 20,000

Sales returns $ 7,000

Accounts Receivable $ 11,000

Accounts Payable $ 10,000

Calculate : Accounts Receivable Turnover and Average Collection period ratio

Answer rating: 100% (QA)

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