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17-2
Accounts receivable turnover ab 12.7 9.2
a. Net sales Rp1,498,000 Rp1,200,000
Accounts receivable net: Beginning of year
Rp 120,000 Rp 140,000 End of year
115,500 120,000 Total
Rp 235,000 Rp 260,000 b. Average Total2
Rp 117,500 Rp 130,000 2008
2007
PT Latuconsina in ‘000 Rp
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17-2
Number of Days’ Sales in Receivables
The number of days’ sales in
receivables is an estimate of the length
of time in days the accounts receivable have been outstanding.
Comparing this measure with the credit terms provides information on the
efficiency in collecting receivables.
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17-2
Number of days’ sales in receivables ab 28.6 39.5
a. Average Total2 Rp 117,500 Rp 130,000
Net sales Rp1,498,000 Rp1,200,000
b. Average daily sales on account Sales365
Rp 4,104 Rp 3,288 2008
2007
PT Latuconsina in ‘000 Rp
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Example Exercise 17-4
17-2
A company reports the following: Net sales
Rp960,000,000 Average accounts receivable net 48,000,000
Determine a the accounts receivable turnover and b the number of days’ sales in receivables. Round to one
decimal place.
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For Practice: PE 17-4A, PE 17-4B
Follow My Example 17-4
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17-2
a. Accounts Receivable Turnover = SalesAverage accounts receivable
Accounts Receivable Turnover = Rp960,000,000Rp48,000,000
Accounts Receivable Turnover = 20.0
b. Number of Days’ Sales in Receivables = Average accounts
receivableAverage daily sales
Number of Days’ Sales in Receivables = Rp48,000,000Rp960,000,000365
Number of Days’ Sales in Receivables = 48,000,0002,630,000
Number of Days’ Sales in Receivables = 18.3 days
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Inventory Turnover
The relationship between the volume of goods merchandise
sold and inventory may be stated
as the inventory turnover
. The purpose of this ratio is to assess
the efficiency of the firm in managing its inventory.
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2008 2007
Inventory turnover ab 3.8 2.8 a. Cost of goods sold
Rp1,043,000 Rp 820,000 Inventories:
Beginning of year Rp 283,000 Rp 311,000
End of year 264,000
283,000 Total
Rp 547,000 Rp 594,000 b. Average Total2
Rp 273,500 Rp 297,000
PT Latuconsina in ‘000 Rp
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Number of days’ sales in inventory ab 95.7 132.2
a. Average Total2 Rp 273,500 Rp 297,000
