credit sales = net annual sales?

Why isn’t cash sales part of net annual sales? Thanks

i’m assuming this is in reference to the receivables turnover ratio ideally you would want to use credit sales for that ratio, but if they are not available net sales would be fine cash sales are part of net annual sales

Yes it’s in reference to the receivable turnover ratio. I guess that makes sense Thanks

supersharpshooter Wrote: ------------------------------------------------------- > i’m assuming this is in reference to the > receivables turnover ratio > > ideally you would want to use credit sales for > that ratio, but if they are not available net > sales would be fine > > cash sales are part of net annual sales confused. if it is a cash sales, there is no receivable, right???

Daj… that’s correct.

yes… what i mean is when you are not given credit sales explicitly you have to use the overall sales figure that includes both cash and credit sales