Selected financial statement numbers for Frederick Company are given below Net sales $277,480 Cost of goods sold 179,000 Average accounts receivable 20,730 Average inventory 4,145 Average property, plant, and equipment 75,705 Average total assets 126,127 Required 1 Using this information, calculate...

1 Receivable Turnover Ratio Net SalesAv ...

Selected financial statement numbers for Frederick Company are given below. Net sales ................. $277,480 Cost of goods

Question:

Selected financial statement numbers for Frederick Company are given below.
Net sales ................. $277,480
Cost of goods sold ............. 179,000
Average ......... 20,730
Average inventory ............. 4,145
Average property, plant, and equipment ... 75,705
Average total assets ............ 126,127

Required:
1. Using this information, calculate Frederick’s receivable turnover ratio (round to two decimal places).
2. Using this information, calculate Frederick’s ratio and also convert the ratio into days.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.