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4 November, 18:58

The 2016 financial statements of BNSF Railway Company report total revenues of $19,829 million, accounts receivable of $1,272 million for 2016 and $1,198 million for 2015. The company's accounts receivable turnover for the year is: Select one: A. 17.0 times B. 8.9 times C. 16.1 times D. 17.9 times E. None of the above

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  1. 4 November, 20:40
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    C. 16.1 times

    Explanation:

    Accounts receivable turnover ratio = Credit sales : average accounts receivable

    where,

    Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) : 2

    = ($1,198 + $1,272) : 2

    = $1,235 million

    And, the net credit sale is $ 19,829 million

    Now put these values to the above formula

    So, the answer would be equal to

    = $19,829 million : $1,235 million

    = 16.1 times
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