The 2013 and 2014 balance sheets for Jackson and Sons showed net accounts receivable of $10,000 and
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The 2013 and 2014 balance sheets for Jackson and Sons showed net accounts receivable of $10,000 and $14,000, respectively, and inventory of $8,000 and $6,000, respectively. The company’s 2014 income statement showed net sales of $109,500 and cost of goods sold of $70,000. Compute the following ratios for 2014:
1. Accounts receivable turnover
2. Days’ sales in receivables
3. Inventory turnover
Accounts ReceivableAccounts 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...
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Related Book For
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
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