Problem 15-1

The Cristo Candy Corporation carries an average balance of inventory equal to $400,000. The company's cost of goods sold averages $4.5 million. What are Cristo's (a) inventory turnover and (b) inventory conversion period?

Problem 15-3

Small Fry Pools generally carries an amount of receivables equal to $80,000, and it annual credit sales equal $2.4 million. What are Small Fry's (a) receivables turnover and (b) receivables collection period (DSO)?