Sales for the year for RK Ltd. were $ 1,500,000, of which one-half was on credit? The average gross margin rate was 40 percent on sales. Account balances follow:

Required:
Compute and comment on the turnover ratios for the trade receivables and inventory, the average age of receivables, and the average days€™ supply of inventory.

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Beginning $150,000$180,000 Ending Trade receivables (net) Inventory 150,000 90,000