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Double West Suppliers (DWS) reported sales for the year of $200,000, all on credit. The average gross profit percentage was 30 percent on sales. Account
Double West Suppliers (DWS) reported sales for the year of $200,000, all on credit. The average gross profit percentage was 30 percent on sales. Account balances follow: Accounts receivable (net) Inventory Beginning $ 35,000 50,000 Ending $ 45,000 30,000 Required: 1. Compute the Receivables Turnover Ratio and Inventory Turnover Ratio. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the Receivables Turnover Ratio and Inventory Turnover Ratio. (Round your answers to 1 decimal place.)
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