Question
Zipper Corporation reported the following condensed income statement for 2015: Sales $6,000,000 Cost of goods sold 4,200,000 Gross profit $1,800,000 Less expenses -1,500,000 Net income
Zipper Corporation reported the following condensed income statement for 2015: Sales $6,000,000 Cost of goods sold 4,200,000 Gross profit $1,800,000 Less expenses -1,500,000 Net income before taxes $300,000 Less income taxes 120,000 Net income after taxes $180,000 Assume the following: Average inventory: $700,000 Average accounts receivable $1,200,000 Average accounts payable $300,000 (Use 365 days a year) Compute the following: Inventory turnover ______________ Accounts receivable turnover ______________ Average number of days to sell an item ______________ Average number of days to collect an account receivable ______________ Number of days in operating cycle ______________
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