Accounts receivable turnover, Days’ sales in inventory, and Inventory turnover (Learning Objective 2) 10–15 min.

Darazi Company had net credit sales of $4,290,000 and cost of goods sold of

$3,000,000 for the year. The net accounts receivable balances at the beginning and end of the year were $600,000 and $700,000, respectively. The inventory balances at the beginning and end of the year were $150,000 and $200,000, respectively.

The accounts payable balances at the beginning and end of the year were $180,000 and $195,000, respectively. Compute the accounts receivable turnover, days’ sales in inventory, and inventory turnover.

AppendixLO1