Suppose the 2022 financial statements of 3M Company report net sales of $23.1 billion. Accounts receivable (net) are $3.2 billion at the beginning of the year and $3.25 billion at the end of the year. Compute 3M’s accounts receivable turnover. (Round answer to 1 decimal place, e.g. 12.5.) Accounts receivable turnover ratio enter the accounts receivable turnover ratio in times rounded to 1 decimal place times

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Dryomys Dryomys · Answer 1 · 2019-12-05T06:33:26+01:00

Answer:

7.16 times

Explanation:

Average accounts receivable:

= (Beginning accounts receivable + Ending accounts receivable) ÷ 2

= ($3.2 billion + $3.25 billion) ÷ 2

= $3.225 billion

Accounts Receivable turnover ratio:

= Net annual credit sale ÷ Average accounts receivable

= $23.1 billion ÷ $3.225 billion

= 7.16 times

Therefore, the Accounts receivable turnover ratio is 7.16 times.

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abiolataiwo2015 abiolataiwo2015 · Answer 2 · 2022-04-12T12:48:14+02:00

Assuming the net sales of $23.1 billion, the Accounts receivable turnover ratio is 7.2 times.

First step

Average accounts receivable= (Beginning accounts receivable + Ending accounts receivable) ÷ 2

Average accounts receivable= ($3.2 billion + $3.25 billion) ÷ 2

Average accounts receivable= $3.225 billion

Second step

Accounts Receivable turnover ratio= Net annual credit sale ÷ Average accounts receivable

Accounts Receivable turnover ratio= $23.1 billion ÷ $3.225 billion

Accounts Receivable turnover ratio= 7.16 times

Accounts Receivable turnover ratio= 7.2 times (Approximately)

Therefore, theAccounts Receivable turnover ratio= is 7.2 times.

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