Inventory and receivable balances and gross profit data for Mountain Electric follow. Instructions: Compute the following ratios

Question:

Inventory and receivable balances and gross profit data for Mountain Electric follow.

Instructions:
Compute the following ratios for 2011 and 2010.
1. Accounts receivable turnover
2. Average collection period (Use the receivables balance at the end of the year.)
3. Inventory turnover
4. Number of days' sales in inventory (Use the inventory balance at end ofyear.)

Accounts Receivable
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...