Wings Corporation has issued common stock only. The company has been successful and has a gross profit

Question:

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.

Ending Inventory
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