Use the following information for Question 10 Question 12

Stanley Corporation has no material problem with uncollectible accounts or obsolete inventory. All sales and purchases are on account. The company provided the following information for the year ending 20X7:

Total sales		$ 2,600,000
Beginning accounts receivable		700,000
Total purchases of inventory		1,800,000
Beginning inventory		50,000
Collections on accounts receivable		2,400,000
Payments on accounts payable		1,850,000
Cost of goods sold		1,775,000

Question 10 (5 points)

Calculate the accounts receivable turnover ratio.

Question 11 (5 points)

Calculate the inventory turnover ratio.

Question 12 (10 points)

If Stanley's competitors have a receivables turnover ratio of "6" and an inventory turnover ratio of "4," would you initially conclude that Stanley is better or worse than its competitors in managing receivables and inventory? Why?