Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zipper Corporation reported the following condensed income statement for 2015: Sales $5,900,000 Cost of goods sold 4,130,000 Gross profit $1,770,000 Less expenses -1,520,000 Net income
Zipper Corporation reported the following condensed income statement for 2015:
Sales | $5,900,000 | |
Cost of goods sold | 4,130,000 | |
Gross profit | $1,770,000 | |
Less expenses | -1,520,000 | |
Net income before taxes | $250,000 | |
Less income taxes | 100,000 | |
Net income after taxes | $150,000 |
Assume the following: | ||
Average inventory | $690,000 | |
Average accounts receivable | $1,220,000 | |
Average accounts payable | $390,000 |
(Use 365 days a year) Compute the following: (Round answers to 2 decimal places, e.g. 52.75.)
Inventory turnover | times | ||
Accounts receivable turnover | times | ||
Average number of days to sell an item | days | ||
Average number of days to collect an account receivable | days | ||
Number of days in operating cycle | days |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started