Selected information from Mystic Corporations balance sheet at December 31, 2010, and income statement for the year

Question:

Selected information from Mystic Corporation’s at December 31, 2010, and income statement for the year ended December 31, 2010 is as follows:
Cash ................ $ 35,000
Accounts receivable, net ........ 73,000
Equipment, net ............ 225,000
Interest payable ........... 1,350
Net income ............ 65,000
Inventory .............. 350,000
Office supplies ........... 5,000
Sales revenue ........... 775,000
Interest expense .......... 1,500
Insurance expense ......... 5,000

Requirements
1. Calculate the corporation’s turnover ratio. The net balance at December 31, 2009, was $87,000. (Round to two decimal places.) Explain what the turnover ratio measures.
2. On average, how many days does it take Mystic to collect its receivables?

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