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YourCompany Inc. reported the following selected financial statement data: 31-Dec-17 31-Dec-18 Cash $ 30,000 $ 32,000 Accounts receivable (net) 48,000 52,000 Inventory 68,000 72,000 Plant
| YourCompany Inc. reported the following selected financial statement data: | ||
| 31-Dec-17 | 31-Dec-18 | |
| Cash | $ 30,000 | $ 32,000 |
| Accounts receivable (net) | 48,000 | 52,000 |
| Inventory | 68,000 | 72,000 |
| Plant assets (net) | 210,000 | 218,000 |
| Total assets | 405,000 | 395,000 |
| Liabilities | 145,000 | 145,000 |
| Shareholders' equity | 260,000 | 250,000 |
| Net sales | $ 340,000 | $ 400,000 |
| Cost of goods sold | 220,000 | 280,000 |
| Net income | $ 20,000 | $ 25,000 |
| Required : (Show all calculations) | ||
| A. Compute the receivables turnover ratio for 2018. | ||
| B. Compute the inventory turnover ratio for 2018. | ||
| C. Compute the average collection period (rounded to one decimal place) for 2018. | ||
| D. Compute the average days in inventory for 2018. | ||
| E. Compute the profit margin on sales for 2018. | ||
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