Sales for the year for RK Ltd. were $1,500,000, of which one-half was on credit. The gross
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Question:
Sales for the year for RK Ltd. were $1,500,000, of which one-half was on credit. The gross profit percentage was 40 percent. Account balances follow:
| Beginning | Ending | |||||
| Accounts receivable (net) | $ | 150,000 | $ | 180,000 | ||
| Inventory | 150,000 | 90,000 | ||||
Required:
Compute the turnover ratios for the accounts receivable and inventory.
Expert Answer:
ANSWER The turnover ratios for the accounts receivable and inventory Trade receivables 1500000 x 50 ... View the full answer
Related Book For 
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
Posted Date:
