Question
Double West Suppliers (DWS) reported sales for the year of $220,000, all on credit. The average gross profit percentage was 30 percent on sales. Account
Double West Suppliers (DWS) reported sales for the year of $220,000, all on credit. The average gross profit percentage was 30 percent on sales. Account balances follow: Beginning Ending Accounts receivable (net) $ 38,000 $ 48,000 Inventory 53,000 33,000 Required: 1. Compute the following turnover ratios. (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. (Use 365 days in a year. Do not round intermediate calculations. Round turnover ratio calculation and final answers to 1 decimal place.)
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