Paul & Griffon manufactures and markets many products you use every day. In 2016, sales for the company were $84,500 (all amounts in millions). The annual report did not report the amount of credit sales, so we will assume that all sales were on credit. The average gross profit percentage was 49.5 percent. Account balances for the year follow:

	Beginning			Ending
Accounts receivable (net)	$	6,200		$	6,600
Inventory		6,980			7,000

Required:

1. Compute the following turnover ratios.

2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory.

Paul & Griffon manufactures and markets many products you use every day. In 2016, sales for the company were $84,500 (all amounts in millions). The annual report did not report the amount of credit sales, so we will assume that all sales were on credit. The average gross profit percentage was 49.5 percent. Account balances for the year follow: Accounts receivable (net) Inventory Beginning Ending $6,200 $6,600 6,980 7,000 Required: 1. Compute the following turnover ratios. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the following turnover ratios. (Do not round intermediate calculations. Round your final answers to 1 decimal place.) Receivables Turnover Ratio Inventory Turnover Ratio Complete this question by entering your answers in the tabs below. Required 1 Required 21 By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. (Round your intermediate calculations and final answers to 1 decimal place.) Average Days to Collect Receivables Average Days to Sell Inventory days days