Question: Using the information provided below: Rubialac Paints Selected Income Statement Items, 2020 Cash Sales $2,500,000 Credit Sales $9,500,000 Total Sales $12,000,000 COGS 7,000,000 Rubialac Paints

Using the information provided below:

Rubialac Paints

Selected Income Statement Items, 2020

Cash Sales$2,500,000

Credit Sales$9,500,000

Total Sales$12,000,000

COGS 7,000,000

Rubialac Paints

Selected Balance Sheet Accounts

12/31/202012/31/19Change

Accounts Receivable $550,000$400,000$150,000

Inventory$275,000$250,000$25,000

Accounts Payable$150,000$110,000$40,000

a)What is the inventory turnover for Rubialac Paints?

b)What is the average production cycle for the firm?

c)What is the average collection cycle?

d)What could Eagle Paints do to reduce the average collection cycle?

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