Collection ratio can be calculated by the formula:
A. Collection Ratio = 365 / Payable Turnover
B. Collection Ratio = 365 + Net Income / Receivable Turnover
C. Collection Ratio = 365 / Receivable Turnover
D. Collection Ratio = 365 + Net Sales / Receivable Turnover
Answer:C
Collection ratio can be calculated by the formula:
A. Collection Ratio = 365 / Payable Turnover B. Collection Ratio = 365 + Net Income / Receivable Turnover C. Collection Ratio = 365 / Receivable Turnover D. Collection Ratio = 365 + Net Sales / Receivable Turnover