The following data were available for Lorie Company:

Sales revenue, $225,000 (including 75,000 cash sales)
Cost of goods sold, $175,000
Average inventory (per month), $20 ,000
Average monthly balance in trade receivables, $20 ,000

Assume a business year of 365 days and calculate the following:
(a) Inventory turnover ______________
(b) Days' supply in inventory ___________
(c) Receivables turnover ___________
(d) Average number of days to collect receivables ________________

Question

The following data were available for Lorie Company:

Sales revenue, $225,000 (including 75,000 cash sales)
 Cost of goods sold, $175,000 
Average inventory (per month), $20 ,000 
Average monthly balance in trade receivables, $20 ,000

Assume a business year of 365 days and calculate the following: 
(a) Inventory turnover ______________ 
(b) Days' supply in inventory ___________ 
(c) Receivables turnover ___________
 (d) Average number of days to collect receivables ________________

Quizplus · Accepted Answer

The Answer of The following data were available for Lorie Company:

Sales revenue, $225,000 (including 75,000 cash sales)
 Cost of goods sold, $175,000 
Average inventory (per month), $20 ,000 
Average monthly balance in trade receivables, $20 ,000

Assume a business year of 365 days and calculate the following: 
(a) Inventory turnover ______________ 
(b) Days' supply in inventory ___________ 
(c) Receivables turnover ___________
 (d) Average number of days to collect receivables ________________

The Following Data Were Available for Lorie Company