During the current year, Fargo Company had sales revenue of $145,000, of which 80% were credit sales.

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During the current year, Fargo Company had sales revenue of $145,000, of which 80% were credit sales. Its cost of goods sold was 60% of its sales revenue. During the year, Fargo’s average inventory was $12,500 and its average net receivables were $9,300. Compute the inventory turnover and the receivables turnover of Fargo Company for the current year (assume a 365-day business year).


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Intermediate Accounting

ISBN: 978-0324659139

11th edition

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

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