CFA CFA General Receivables Turnover Question

Receivables Turnover Question

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    • Avatar of Stuj79Stuj79
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        Sorry I meant “net credit sales” rather than “purchases”….you say all sales were made on credit but don’t provide a figure. The cash collected of 30 can’t be credit sales as, well…..its cash.

        In my opinion to calculate receivables turnover we need a figure for net credit sales

      • Avatar of Stuj79Stuj79
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          I may be missing something here but my understanding is that we require the figure for “purchases” to calculate the receivables turnover given average accounts receivable.

          Receivables turnover is purchases divided by average receivables.

          Purchases can be calculated using COGS, ending inventory and beginning inventory. I’m not sure we are able to calculate receivables without this information….

          Where is this question taken from?

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