Question
Procter & Gamble is a multinational corporation that manufactures and markets many products that are probably in your home. Last year, sales for the company
Procter & Gamble is a multinational corporation that manufactures and markets many products that are probably in your home. Last year, sales for the company were $76,483 (all amounts in millions). The annual report did not disclose the amount of credit sales, so we will assume that 80 percent of sales were on credit. The average gross profit rate was 43 percent on sales. Account balances follow: Beginning Ending Accounts receivable (net) $ 6,631 $ 5,733 Inventory 6,826 6,302 Required: 1. Compute the turnover for the accounts receivable and inventory. (Round your answers to 1 decimal place.) 2. Compute the average age of receivables, and the average days' supply of inventory. (Use 365 days in a year. Round your answers to 1 decimal place.)
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