Answer:
Vici's receivables turnover ratio for the year is 2,5
Explanation:
We can calculate the Accounts receivable turnover by dividing net credit sales by the average accounts receivable for that period.
Accounts receivable turnover= net credit sales /average accounts receivable
In this case ,
Net credit sales= 70% of total sales= 70% $1,000,000= 700,000
To get average accounts receivable, add the value of accounts receivable at the beginning to the value at the end of the period and divide the sum by two
Average accounts receivable= ($220,000+$340,000)/2
Average accounts receivable= $280,000
Then,
Accounts receivable turnover= 700,000/$280,000=2,5
