Ritter Company, whose current assets at December 31 are shown in Exercise E13-6A, had net sales for the year of \(\$ 850,000\) and cost of goods sold of \(\$ 550,000\). At the beginning of the year, Ritter's accounts receivable (net) were \(\$ 160,000\) and its inventory was \(\$ 175,000\).

a. What is the company's accounts receivable turnover for the year?

b. What is the company's average collection period for the year?

c. What is the company's inventory turnover for the year?

d. What is the company's days' sales in inventory for the year?

Exercise E13-6A

Ritter Company has a current ratio of 3.00 on December 31. On that date the company's current assets are as follows:

Ritter Company's current liabilities at the beginning of the year were \(\$ 150,000\) and during the year its operating activities provided a cash flow of \(\$ 60,000\).

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Cash.... Short-term investments Accounts receivable (net). Inventory..... Prepaid expenses.. Current assets $ 32,000 49,300 170,000 200,000 11,600 $462,900