1.Company X reports sales of $10 million for Year 2, with a gross profit margin of 40%. 20% of Co X's sales are on credit.

Following are the information for Year 1 and Year 2 respectively.

Account receivable $150,000 $170,000

Inventory $900,000 $1,000,000

Accounts payable $1,100,000 $1,200,000

Required: Compute the following at the end of Year 2 for Company X:

(a) Accounts receivable days outstanding

(b) Accounts payable days outstanding

(c) Days in inventory