Answer:
The turnover ratio is 10.7
Explanation:
Turnover ratio may be defined as the ration of net credit sales with the average accounts receivable.
The formula used to calculate the turnover ratio is :
[tex]\text{Turn over ratio}= \frac{\text{net credit sales}}{\text{average account receivables}}[/tex]
Net credit sales (2019)= $1,022,000
Average account receivables = [tex]\frac{(88,000-4000)+(111,000-5,500)}{2}[/tex]
=94750.
[tex]\text{Turn over ratio}=[tex]\frac{1,022,000}{94750}[/tex]
= 10.7
Hence, The turn over ratio is 10.7.
