Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information was available for the year ended December 31, 2019: Net sales $ 1,095,000 Cost of goods sold 657,000 Average accounts receivable for
The following information was available for the year ended December 31, 2019:
Net sales | $ | 1,095,000 | |
Cost of goods sold | 657,000 | ||
Average accounts receivable for the year | 44,250 | ||
Accounts receivable at year-end | 18,000 | ||
Average inventory for the year | 226,000 | ||
Inventory at year-end | 158,400 | ||
Required:
Calculate the inventory turnover for 2019.
Calculate the number of days' sales in inventory for 2019, using year-end inventories. (Use 365 days a year. Round your answer to 1 decimal place.)
Calculate the accounts receivable turnover for 2019. (Round your answer to 1 decimal place.)
Calculate the number of days' sales in accounts receivable for 2019, using year-end accounts receivable. (Use 365 days a year. Round your answer to 1 decimal place.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started