Accounts Receivable = $328,800
Credit sales for the year just ended = $4,192,200
What is the company's receivables
turnover?
Accounts Receivable Turnover = Net Credit Sales/ Accounts
Receivables
                                                Â
= $4,192,200 / $328,800
                                                  =
12.75 Times.
What is the company's days' sales in
receivables?
Days Sales in Receivables = Accounts Receivables / Net Credit
Sales * 365
                                            =
$328,800 / $4,192,200 * 365
                                            =
28.62 Times
How long did it take on average for credit customers
to pay off their accounts during the past year?
Average Collection Period = Accounts Receivables/ Net Credit
Sales * 365
                                           =
$328,800 / $4,192,200 * 365
  = 28.62 Times
Note : Based on 365 Days in Year
