Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Double West Suppliers (DWS) reported sales for the year of $500,000, all on credit. The average gross profit percentage was 40 percent on sales. Account
Double West Suppliers (DWS) reported sales for the year of $500,000, all on credit. The average gross profit percentage was 40 percent on sales. Account balances are as follows:
Beginning | Ending | |||||
Accounts receivable (net) | $ | 37,000 | $ | 63,000 | ||
Inventory | 52,000 | 48,000 | ||||
Required: 1. Compute the turnover ratios for accounts receivable and inventory. (Round your answers to 1 decimal place.)
2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. (Round your answers to 1 decimal place.)
3. Not available in Connect.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started