Question
The following information was available for the year ended December 31, 2016: Net sales $ 985,500 Cost of goods sold 635,100 Average accounts receivable for
The following information was available for the year ended December 31, 2016:
Net sales | $ | 985,500 | |
Cost of goods sold | 635,100 | ||
Average accounts receivable for the year | 42,400 | ||
Accounts receivable at year-end | 24,300 | ||
Average inventory for the year | 202,000 | ||
Inventory at year-end | 158,350 | ||
Required:
a. Calculate the inventory turnover for 2016. (Round your answer to 2 decimal places.)
b. Calculate the number of days' sales in inventory for 2016, using year-end inventories. (Use 365 days a year. Round your answer to 1 decimal place.)
c. Calculate the accounts receivable turnover for 2016. (Round your answer to 1 decimal place.)
d. Calculate the number of days' sales in accounts receivable for 2016, using year-end accounts receivable. (Use 365 days a year. Round your answer to 1 decimal place.)
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