Calculation of Closing Trade Receivable:

Step 1: Calculation of Cash Revenue from Operation:
Cash revenue from operation can be calculated by multiplying the credit revenue from operation by 25%.

Credit revenue from operation = Cost of revenue from operation - Gross profit on cost
= $1,600,000 - ($1,600,000 * 25%)
= $1,600,000 - $400,000
= $1,200,000

Cash revenue from operation = Credit revenue from operation * 25%
= $1,200,000 * 25%
= $300,000

Step 2: Calculation of Total Revenue from Operation:
Total revenue from operation can be calculated by adding the cash revenue from operation and credit revenue from operation.

Total revenue from operation = Cash revenue from operation + Credit revenue from operation
= $300,000 + $1,200,000
= $1,500,000

Step 3: Calculation of Trade Receivable Turnover Ratio:
Trade receivable turnover ratio can be calculated by dividing the total revenue from operation by the average trade receivable.

Trade receivable turnover ratio = Total revenue from operation / Average trade receivable

Since the trade receivable turnover ratio is given as 5 times, we can rearrange the formula to calculate the average trade receivable.

Average trade receivable = Total revenue from operation / Trade receivable turnover ratio
= $1,500,000 / 5
= $300,000

Step 4: Calculation of Closing Trade Receivable:
Closing trade receivable is given as 1.5 times the beginning trade receivable. Therefore, we can calculate the closing trade receivable by multiplying the beginning trade receivable by 1.5.

Closing trade receivable = Beginning trade receivable * 1.5
= $300,000 * 1.5
= $450,000

Explanation:

The closing trade receivable can be calculated using the given information. First, we calculate the cash revenue from operation by multiplying the credit revenue from operation by 25%. Then, we calculate the total revenue from operation by adding the cash revenue from operation and credit revenue from operation. Next, we calculate the average trade receivable using the trade receivable turnover ratio. Finally, we calculate the closing trade receivable by multiplying the beginning trade receivable by 1.5.