Time is a vital resource that each organization treasures and attempts to turn into a gain. In choosing document management software, take note of a clutterless and user-friendly interface that empowers customers. DocHub delivers cutting-edge tools to improve your file managing and transforms your PDF editing into a matter of one click. Delete Calculations from the Accounts Receivable Purchase Agreement with DocHub in order to save a lot of efforts and improve your productiveness.
Make PDF editing an simple and intuitive operation that saves you plenty of precious time. Effortlessly change your documents and deliver them for signing without adopting third-party software. Concentrate on relevant duties and improve your file managing with DocHub today.
in this video were gonna discuss the accounts receivable turnover ratio so basically the account receivable turnover ratio is gonna tell you how many times in a given year or quarter whatever the period is that a company collects its average account receivable balance so to calculate this heres the formula youre basically gonna take the net credit sales this is not just a total sales revenue because total sales revenue is gonna include cash sales so if at all possible you want to get the net credit sales okay and then again I said net the net is because we would subtract out Lake sales return sales discounts and so forth right so weve got net sales just gross sales minus sales discounts sales returns and allowances and so forth but then we have net credit sales okay so were were actually gonna also subtract out the cash sales we dont want cash in there because what were trying to do is measure how quickly how many times in a period a company is collecting its receivables okay