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Exercise 13.10 (Algo) Calculating the accounts receivable turnover and the inventory turnover. LO 13-6 W. Tsang Electronics reports the following in its most recent year
Exercise 13.10 (Algo) Calculating the accounts receivable turnover and the inventory turnover. LO 13-6
W. Tsang Electronics reports the following in its most recent year of operations:
- Net sales, $1,123,600 (all on account)
- Cost of goods sold, $607,200
- Gross profit, $516,400
- Accounts receivable, beginning of year, $96,000
- Accounts receivable, end of year, $116,000
- Merchandise inventory, beginning of year, $61,000
- Merchandise inventory, end of year, $71,000.
Based on these balances, compute:
- The accounts receivable turnover.
- The average collection period.
- The inventory turnover.
- The average number of days in inventory.
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