Wings Corporation has issued common stock only. The company has been successful and has a gross profit rate of 20%. The information shown below was taken from the company's financial statements.
Beginning inventory..................................... $ 482,000
Purchases...................................................4,836,000
Ending inventory.................................... ......... ?
Average accounts receivable.............................800,000
Average common stockholders' equity............... 3,500,000
Sales (all on credit) .......................................6,000,000
Net income....................................................420,000
Instructions
Compute the following:
(a) Receivables turnover and the average collection period.
(b) Inventory turnover and the days in inventory.
(c) Return on common stockholders' equity.