E3-12 Ratios for Receivables, Inventory, and Fixed Assets The financial statement data are for Ridge Road Company: 2006 2005 $105,000 70,000 Sales Cost of goods sold Accounts receivable Inventory Property, plant, and equipment $140,000 100,000 $ 30,000 35,000 2004 $80,000 55,000 $ 5,000 20,000 $ 25,000 15,000 105,000 80,000 85,000 Required for 2005 and 2006, compute: 1. Average collection period 2. Number of days' sales in inventory 3. Fixed asset turnover Use the average of the beginning and ending asset balances in computing the ratios