Question
Sales for the year for Victor Company were $1,100,000, 70 percent of which were on credit. The average gross profit on sales was 50 percent.
Sales for the year for Victor Company were $1,100,000, 70 percent of which were on credit. The average gross profit on sales was 50 percent. Additional account balances were: Ending Beginning Accounts receivable (net) $ 64,000 $ 80,000 Inventory 72,000 39,000 Required: 1. Compute the turnover for the accounts receivable and inventory. (Round your intermediate calculations and final answers to 2 decimal places.)
2. Compute the average days to collect receivables, and the average days to sell inventory. (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal places.)
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