Anne Elizabeth Corporation is engaged in the business of making toys. A high percentage of its products
Question:
Required
a. Using averages based on the year-end figures, compute the following:
1. Accounts receivable turnover in days
2. Accounts receivable turnover per year
3. Inventory turnover in days
4. Inventory turnover per year
b. Using averages based on monthly figures, compute the following:
1. Accounts receivable turnover in days
2. Accounts receivable turnover per year
3. Inventory turnover in days
4. Inventory turnover per year
c. Comment on the difference between the ratios computed in (a) and (b).
d. Compute the days sales in receivables.
e. Compute the days sales in inventory.
f. How realistic are the days sales in receivables and the days sales in inventory that were computed in (d) and(e)?
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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson