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The Following Selected Financial Information for a Company Was Reported

Question 212

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The following selected financial information for a company was reported for the current year end. Calculate the following company ratios:
(a) Accounts receivable turnover.
(b) Inventory turnover.
(c) Days' sales uncollected
Accounts receivable, beginning-year……………. $170,000
Accounts receivable, year-end. 190,000Merchandise inventory, beginning-year. 80,000 Merchandise inventory, year-end. 60,000 Cost of goods sold. 580,000\begin{array}{llr} \text {Accounts receivable, year-end. } &190,000\\ \text {Merchandise inventory, beginning-year. } &80,000\\ \text { Merchandise inventory, year-end. } &60,000\\ \text { Cost of goods sold. } &580,000\\\end{array}
 Accounts receivable, year-end 190,000 Merchandise inventory, beginning-year. 80,000 Merchandise inventory, year-end. 60,000 Cost of goods sold.580,000\begin{array}{llr} \text { Accounts receivable, year-end } &190,000\\ \text { Merchandise inventory, beginning-year. } &80,000\\ \text { Merchandise inventory, year-end. } &60,000\\ \text { Cost of goods sold.} &580,000\\\end{array}
Credit sales………………………………………... 1,000,000

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