4 November, 18:58

# The 2016 financial statements of BNSF Railway Company report total revenues of \$19,829 million, accounts receivable of \$1,272 million for 2016 and \$1,198 million for 2015. The company's accounts receivable turnover for the year is: Select one: A. 17.0 times B. 8.9 times C. 16.1 times D. 17.9 times E. None of the above

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1. 4 November, 20:40
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C. 16.1 times

Explanation:

Accounts receivable turnover ratio = Credit sales : average accounts receivable

where,

Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) : 2

= (\$1,198 + \$1,272) : 2

= \$1,235 million

And, the net credit sale is \$ 19,829 million

Now put these values to the above formula

So, the answer would be equal to

= \$19,829 million : \$1,235 million

= 16.1 times
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