Answer :
The receivables turnover for Benton, Incorporated, is approximately 13 times per year.
The receivables turnover ratio is a financial metric that assesses how effectively a company manages its receivables. It is calculated by dividing the net credit sales by the average accounts receivable. The average collection period, given here as 27 days, is used to convert the turnover into a frequency per year.
In this context, Benton, Incorporated, has a receivables turnover of approximately 13 times per year. This implies that, on average, the company collects its outstanding receivables 13 times annually. A higher turnover ratio generally indicates that the company is efficient in converting its credit sales into cash, reflecting effective credit and collection management. The 27-day average collection period is crucial in determining the frequency of turnover, providing insights into the company's liquidity and efficiency in managing its receivables.