Information from River Corporations balance sheet at December 31, 2010, and income statement for the year ended

Question:

Information from River Corporation’s at December 31, 2010, and income statement for the year ended December 31, 2010, is as follows:
Cash ............. $ 15,000
Cost of goods sold ........ 515,000
Unearned revenue ......... 25,000
Accounts receivable, net ..... 115,000
Accounts payable ......... 13,000
Net income .......... 48,000
Inventory ............ 212,000
Salaries payable ........ 12,000
Sales revenue ......... 1,825,000
Interest expense ........ 1,350

Requirements
1. Calculate the corporation’s turnover ratio. The balance (net) at December 31, 2009, was $122,000. (Round to two decimal places.) Explain what the turnover ratio measures.
2. On average, how many days does it take River to collect its receivables?

Accounts Receivable
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