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A Corp net A/c Rec 850,000 in 2001 & 1,150,000 in 2002. Net cash sales in 2002, 3,300,000. The A/c R turnover ratio in 2002 was 16. Net sales in 2002?

a.12,800,000

 

b.16,000,000

 

c.16,100,000

 

 d.19,300,000

Financial Accounting Sales
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Question added by Ajay Dutt , Senior Accountant , Concept Zone Group of Companies
Date Posted: 2015/06/26
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Muhammad Kassab CPA CMA CertIFR
by Muhammad Kassab CPA CMA CertIFR , Accounting Manager , Marine Buildings Landmarks

Credit sales = average A/R × A/R turnover Then credit sales = 16 M Net sales for 2002 = 16M + 3.3 M = 19.3 M

Tranquilino Jr Rivera
by Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

Answer is16M. Option B is the answer.

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