Calculate the receivables turnover, inventory turnover, and average collection period for a firm, given the following accounting

Question:

Calculate the receivables turnover, inventory turnover, and average collection period for a firm, given the following accounting data: accounts receivable are $500,000; accounts payable are $305,000; inventory is $650,000; gross profit is $550,000; sales are $950,000. Interpret the receivables turnover, inventory turnover, and the average collection period.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...