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Question
Compute the accounts receivable as a percentage of revenue for General Electrics and Dunkin Donuts showing your computations.
Unsure if these are right or am I supposed to use another ratio?
You divide the accounts receivable by the total revenues then times it by 100 to get the percentage which would be...
Dunkin Donuts: 75,963/1,321,617=0.057 x 100 = 5.7 %
General Electrics: 19,874/121,615=0.163 x 100 = 16.3%
Are you supposed to add other income to total revenues when doing the ratios?
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