A recent annual report for NPS contained the following data:(dollars in thousands)Previous YearCurrent Year$3,617,000183,000$ 4,517,000150,000Accounts receivableLess: Allowance for doubtful accounts$ 4,367,000$3,434,000Net accounts receivable$ 35,797,000Net sales (assume all on credit)Required:1. Determine the receivables turnover ratio and average days sales in receivables for the current year. (Use 365 days a year. Do notround intermediate calculations. Enter yoanswers in thousands not in dollars.)Receivables Turnover RatioNumerator0 timesDenominatorAverage Days Sales in ReceivablesNumerator0 daysDenominatorII

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Asked Oct 16, 2019
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A recent annual report for NPS contained the following data:
(dollars in thousands)
Previous Year
Current Year
$3,617,000
183,000
$ 4,517,000
150,000
Accounts receivable
Less: Allowance for doubtful accounts
$ 4,367,000
$3,434,000
Net accounts receivable
$ 35,797,000
Net sales (assume all on credit)
Required:
1. Determine the receivables turnover ratio and average days sales in receivables for the current year. (Use 365 days a year. Do not
round intermediate calculations. Enter yo
answers in thousands not in dollars.)
Receivables Turnover Ratio
Numerator
0 times
Denominator
Average Days Sales in Receivables
Numerator
0 days
Denominator
II
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A recent annual report for NPS contained the following data: (dollars in thousands) Previous Year Current Year $3,617,000 183,000 $ 4,517,000 150,000 Accounts receivable Less: Allowance for doubtful accounts $ 4,367,000 $3,434,000 Net accounts receivable $ 35,797,000 Net sales (assume all on credit) Required: 1. Determine the receivables turnover ratio and average days sales in receivables for the current year. (Use 365 days a year. Do not round intermediate calculations. Enter yo answers in thousands not in dollars.) Receivables Turnover Ratio Numerator 0 times Denominator Average Days Sales in Receivables Numerator 0 days Denominator II

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Expert Answer

Step 1

Here, receivable turnover ratio is calculated by dividing net credit sales with the average account receivable. Average account receivable is calculated by ...

Net credit sales
Receivables turnover ratio
Average accounts receivable
35,797
3,955
=9.02times
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Net credit sales Receivables turnover ratio Average accounts receivable 35,797 3,955 =9.02times

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