Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information was available for the year ended December 31, 2019: Net sales $821,250 Cost of goods sold$602,250 Average accounts receivable for the year$39,100

The following information was available for the year ended December 31, 2019:

Net sales $821,250

Cost of goods sold$602,250

Average accounts receivable for the year$39,100

Accounts receivable at year-end$30,400

Average inventory for the year$166,000

Inventory at year-end$157,575

Required:

  1. Calculate the inventory turnover for 2019.(Round your answer to 2 decimal places.)
  2. 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.)
  3. Calculate the accounts receivable turnover for 2019.(Round your answer to 1 decimal place.)
  4. 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

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

Horngrens Financial & Managerial Accounting The Financial Chapters

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

4th Edition

0133255573, 978-0133255577

More Books

Students also viewed these Accounting questions

Question

2. Develop a good and lasting relationship

Answered: 1 week ago

Question

1. Avoid conflicts in the relationship

Answered: 1 week ago