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Sales for the year for Victor Company were $1,000,000, 70 percent of which were on credit. The average gross profit rate was 40 percent on
Sales for the year for Victor Company were $1,000,000, 70 percent of which were on credit. The average gross profit rate was 40 percent on sales. Account balances follow:
Beginning| Ending
Accounts receivable (net) $ 45,000 $ 60,000
Inventory 70,000 25,000
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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