Procter & Gamble is a multinational corporation that manufactures and markets many products that you use every
Question:
Procter & Gamble is a multinational corporation that manufactures and markets many products that you use every day. In 2017, assume that sales for the company were $83,503 (all amounts in millions) and that all sales were on credit. The average gross profit percentage was 51.3 percent. Account balances are as follows:
Required:
1. Compute the turnover ratios for accounts receivable and inventory (rounded to one decimal place).
2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory.?
3. Interpret what these ratios and measures mean for P&G.
CorporationA 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:
Req 1 Receivables turnover ratio Net credit sales Average accounts ...View the full answer
Fundamentals of Financial Accounting
ISBN: 978-1259269868
5th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
