Accounts Receivable and Inventory Ratios Purple Company, whose current assets at December 31 are shown below,...

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Accounts Receivable and Inventory Ratios Purple Company, whose current assets at December 31 are shown below, had net sales for the year of $580,000 and cost of goods sold of $339,000. At the beginning of the year, accounts receivable (net) were $121,000 and inventory was $160,500. Cash and cash equivalents $13,000 Short-term investments 90,000 Accounts receivable (net) 125,000 Inventory 178,500 Prepaid expenses Current assets 11,500 $418,000 Instructions: Round turnover ratios to two decimal places. Use rounded turnover ratios to compute respective days' ratios. Round days' ratios to the nearest whole number (day). a. What is the company's accounts receivable turnover? b. What is the company's average collection period? days c. What is the company's inventory turnover? d. What is the company's days' sales in inventory? days Accounts Receivable and Inventory Ratios Purple Company, whose current assets at December 31 are shown below, had net sales for the year of $580,000 and cost of goods sold of $339,000. At the beginning of the year, accounts receivable (net) were $121,000 and inventory was $160,500. Cash and cash equivalents $13,000 Short-term investments 90,000 Accounts receivable (net) 125,000 Inventory 178,500 Prepaid expenses Current assets 11,500 $418,000 Instructions: Round turnover ratios to two decimal places. Use rounded turnover ratios to compute respective days' ratios. Round days' ratios to the nearest whole number (day). a. What is the company's accounts receivable turnover? b. What is the company's average collection period? days c. What is the company's inventory turnover? d. What is the company's days' sales in inventory? days