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DuckWing Stores (DWS) reported sales of $620,000 for the year; one-half of sales were on credit. The average gross profit percentage was 25 percent on
DuckWing Stores (DWS) reported sales of $620,000 for the year; one-half of sales were on credit. The average gross profit percentage was 25 percent on sales. Account balances follow:
Beginning | Ending | |
Accounts receivable (net) | $41,000 | $59,000 |
Inventory | 57,000 | 36,000 |
|
Requirement 1: |
Compute the turnover ratios for accounts receivable and inventory. (Round your answers to 1 decimal place.) |
Receivable turnover ratio | |
Inventory turnover ratio |
Requirement 2: |
Calculate the average days to collect receivables and the average days to sell inventory. (Round your answers to 1 decimal place.) |
Days to collect | days | |
Days to sell | days |
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