Given Net Sales, Beginning Accounts Receivable, and Ending Accounts Receivable, this determines Average Accounts Receivable, Receivables turnover ratio, and Average Collection Period. This calculator has 3 inputs.
What 3 formulas are used for the Receivables Ratios Calculator?
Average Receivables = (Beginning Accounts Receivable + Ending Accounts Receivables)/2
Receivables Turnover Ratio = Net Sales/Average Receivables
Average Collection Period = 365/Receivables Turnover Ratio