Formulas Test 3 Flashcards
0
Q
Receivable turnover ratio
A
Net credit sales / average net accounts receivable
1
Q
Net realizable value
A
Accounts recordable - allowance
2
Q
Average accounts receivable
A
Begin AR + end AR / 2
3
Q
How
Many times we collect
A
Net credit sales / any net AR
4
Q
Average collection period
A
365/ receivable turnover ratio
5
Q
Interest calculations
A
Amount borrowed x annual interest rate x number of months borrowed
/ 12
