Computing and Interpreting the Receivables Turnover Ratio A recent annual report for Dell, Inc., contained the following
Question:
A recent annual report for Dell, Inc., contained the following data:
Required:
1. Determine the receivables turnover ratio and average days sales in receivables for the current year.
2. Explain the meaning of eachnumber.
Transcribed Image Text:
(dollars in thousands) Current Year Previous Year Accounts receivable Less: Allowance for doubtful accounts Net accounts receivable Net sales (assume all on credit) $6,064,000 $ 4,843,000 103.000 $ 4,731,000 $61,101,000 $5,961,000
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