Exercise $4-3$ Accounts Receivable Turnover Ratio $($a driver of Efficiency$)$

Number of Days$$ Sales in Receivables

A$.$ When calculating the $2017$ Accounts Receivable Turnover Ratio, which financial statement

line items are used for the:

$1.2.$ Numerator? $$ The line item name on Toro$$s financial statement and the $ amount.

Denominator? $($Note that the answers for this item are on the Answer Sheet. Just the

Receivables, net: Customers amount should be used for the denominator.$)$

B$.$ Calculate Toro$$s Accounts Receivable Turnover Ratio for $2017.$ Round Average Accounts

Receivable to a whole number. Round your final answer to $2$ decimal places.

C$.$ The Accounts Receivable Turnover Ratio is a$($n$)$:

$$up$-$arrow indicator $$down$-$arrow indicator $$up$-$down$-$arrow indicator

D$.$ On the Answer Sheet under your answer for item B$.$ is Toro$$s $2016$ Accounts Receivable

Turnover Ratio. Which year, $2017$ or $2016,$ had a better Accounts Receivable Turnover

Ratio?

E$.$ Calculate Toro$$s Number of Days$$ Sales in Receivables for $2017.$ Utilize the Turnover Ratio

calculated in B$.$ above. Round your final answer to $2$ decimal places.

F$.$ Number of Days$$ Sales in Receivables is a$($n$)$:

$$up$-$arrow indicator $$down$-$arrow indicator $$up$-$down$-$arrow indicator

G$.$ On the Answer Sheet under your answer for item E$.$ is Toro$$s $2016$ Number of Days$$ Sales

in Receivable