Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Inside Accounting The Sociology Of Financial Reporting And Auditing

Authors: David Leung

1st Edition

1138251178, 9781138251175

More Books

Students also viewed these Accounting questions

Question

2. What is speedup?

Answered: 1 week ago