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Grady Corporation had the following comparative current assets and current liabilities: Dec. 31. 2020 Dec. 31, 2012 Current assets Cash Marketable securities Accounts receivable Inventory
Grady Corporation had the following comparative current assets and current liabilities: Dec. 31. 2020 Dec. 31, 2012 Current assets Cash Marketable securities Accounts receivable Inventory Prepaid expenses Total current assets Current liabilities Accounts payable Salaries payable Income tax payable Total current liabilities $ 20,000 40,000 60,000 110,000 35.000 $265,000 $ 30,000 10,000 95,000 90,000 20,000 $245,000 S115,000 40,000 20.000 $175,000 $110,000 30,000 15.000 $155,000 During 2020, net credit sales and cost of goods sold were $450,000 and $250,000, respectively. Net cash provided by operating activities for 2020 was $130,000. Compute average collection period (average number of days to collect accounts receivable) a) 62.9 days b) 58.5 days c) 68.2 days d) 52.8 days Dec. 31, 2020 Dec. 31. 2019 Current assets Cash Marketable securities Accounts receivable Inventory Prepaid expenses Total current assets Current liabilities Accounts payable Salaries payable Income tax payable Total current liabilities $ 20,000 40,000 60,000 110,000 35,000 $265,000 $ 30,000 10,000 95,000 90,000 20.000 $245,000 $115,000 40,000 20,000 $175,000 $110.000 30,000 15,000 $155,000 During 2020, net credit sales and cost of goods sold were $450,000 and $250,000, respectively. Net cash provided by operating activities for 2020 was $130,000. Compute accounts receivable turnover ratio for 2020 a) 4.2 times b) 6.5 times c) 5.8 times d) 3.8 times e) 6.5 times
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