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The Following Information Is Available for a Company for the Current

Question 125

Essay

The following information is available for a company for the current year:
Net Sales Revenue $ 345,000
Cost of Goods Sold 205,000
Average Accounts Receivable 32,500
Average Inventory 9,450
Average Net Fixed Assets 81,250
Average Total Assets 130,000
Required:
Part a.Calculate the receivables turnover ratio for the current year.
Part b.Calculate the days to collect for the current year.
Part c.Calculate the inventory turnover ratio for the current year.
Part d.Calculate the days to sell for the current year.
Round all ratios to two decimal points.

Correct Answer:

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Part a
Receivables turnover ratio = Net ...

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