Procter & Gamble is a multinational corporation that manufactures and markets many household products. Last year, sales for the company were $83,062 (all amounts in millions). The annual report did not disclose the amount of credit sales, so we will assume that 90 percent of sales were on credit. The average gross profit on sales was 49 percent. Additional account balances were:

Required:
Compute Procter & Gamble's receivable turnover ratio and its inventory turnover ratio. On average, how many days does it take for the company to collect its accounts receivable and sell its inventory?

Transcribed Image Text:

Ending Accounts receivable (net) Inventory $6,386 6,759 Beginning S6,508 6,909