Question
Nelson Paints Selected Income Statement Items, 2018 Cash Sales $2,500,000 Credit Sales $9,500,000 Total Sales $12,000,000 COGS $7,000,000 Nelson Paints Selected Balance Sheet Accounts 12/31/2018
Nelson Paints
Selected Income Statement Items, 2018
Cash Sales $2,500,000
Credit Sales $9,500,000
Total Sales $12,000,000
COGS $7,000,000
Nelson Paints
Selected Balance Sheet Accounts
12/31/2018 12/31/17 Change
Accounts Receivable $550,000 $400,000 $150,000
Inventory $275,000 $250,000 $25,000
Accounts Payable $150,000 $110,000 $40,000
Using the information provided, what is the inventory turnover for Nelson Paints? What is the average production cycle for the firm? What is the average collection cycle? What could Eagle Paints do to reduce the average collection cycle?
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Business Math
Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble
10th edition
133011208, 978-0321924308, 321924304, 978-0133011203
