Double West Suppliers (DWS) reported sales for the year of $280,000, all on credit. The average...
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Double West Suppliers (DWS) reported sales for the year of $280,000, all on credit. The average gross profit percentage was 40 percent on sales. Account balances follow. Beginning $ 43,000 58,000 Ending $ 53,000 38,000 Accounts receivable (net) Inventory Required: 1. Compute the following turnover ratios. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. Double West Suppliers (DWS) reported sales for the year of $280,000, all on credit. The average gross profit percentage was 40 percent on sales. Account balances follow. Beginning $ 43,000 58,000 Ending $ 53,000 38,000 Accounts receivable (net) Inventory Required: 1. Compute the following turnover ratios. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory.
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Sales 280000 Less Gross Profit 112000 28000040 Cost of goods sold 168000 ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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